Could someone help me to understand these problems with their solutions, please?

Question

Could someone help me to understand these problems with their solutions, please? I appreciate it your help a lot

1) While traveling abroad, Johnny spent all of the money in his wallet to buy 4 plates of spaghetti and 8 oysters. Spaghetti costs 10 units of the local currency per plate and he had 72 units of currency in his wallet. If s denotes the number of plates of spaghetti and o denotes the number of oysters purchased, the set of commodity bundles that he could just afford with the money in his wallet is described by the equation, a. 10s +6o 72 c. 10s 80 72 d. 10s +4o 72 e. There is not enough information to determine the answer 2) A consumer's budget line for goods x and y depends on all of the following except a. her preferences between x and y b. the amount of money she has to spend on x and y. the price of x. d. the price of y e. All of the above. 3) Suppose there are two goods, the prices of both goods are positive, and a consumer's income is also positive. If the consumer's income doubles and the price of both goods doubles, a. the consumer's budget line gets steeper and shifts inward. b. the slope of the consumer's budget line does not change but the budget line shifts outward away from the origin. c. the consumer's budget line gets steeper and shifts outward. d. the slope of the consumer's budget line does not change but the budget line shifts inward toward the origin. e. the slope of the consumer's budget ine does not change and there's no shift either

Explanation / Answer

1. The correct answer is: b)

Reason: given Total money is 72 and Jhonny purchase 4 plates of sphagetti and 8 oysters. Clearly, Option b) only satisfy this condition.

2. The correct answer is: a)

Reason: consumer preferences are given by the utility function or the indifference curve.

3. The correct answer is: e)

Reason: The budget line is given as: P1x1 + P2x2 = M

As all income and prices double, the budget line remains unaffected as the slope P1/P2 remains the same. Also, the intercepts M/P1 and M/P2 remains the same.

Thanks!

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