As the lockdown period ends, you decided to visit the new local coffee shop and spend...

As the lockdown period ends, you decided to visit the new local coffee shop and spend no more than $15 for your breakfast. You equally like to have ‘pancakes with maple syrup and a cup of coffee’ and ‘raisin toast with salmon and a cup of coffee’. The price of the pancake-coffee combination was $10, while that of raisin toast-coffee was $12. Find out the optimum amount of goods you consumed. As you enjoyed the food of this new place, you wanted breakfast once again there the following day. To your surprise, you noted that raisin toast-coffee was available at a discounted price of $9, while the price of pancake-coffee did not change. Find out your optimal consumption in this changed situation. Explain the income and substitution effects of this price change using a diagram.

Expert Solution

Rahul Sunny answered 2 years ago

During the first week of lockdown, you decided not to spend more than $30 on your...

During the first week of lockdown, you decided not to spend more than $30 on your food. You ate only hotdog with burger bread, and that also in a 1:1 combination, and nothing else. The prices of both these goods were $1 per unit. Find out the optimum amount of hotdog and burger bread you consumed that week. In the second week, due to lack of supply the price of hotdog increased to $2 while the price of burger bread...

A local bookstore is considering adding a coffee shop to their store. Building the coffee shop...

A local bookstore is considering adding a coffee shop to their store. Building the coffee shop will cost $235,956.00 today. The bookstore is going to try this project for five years. The bookstore wants a 12.00% return on their investment. What yearly cash flow must this project generate to “break-even”? Answer format: Currency: Round to: 2 decimal places.

In a sample of 28 cups of coffee at the local coffee shop, the temperatures were...

In a sample of 28 cups of coffee at the local coffee shop, the temperatures were normally distributed with a mean of 182.5 degrees with a sample standard deviation of 14.1 degrees. What would be the 95% confidence interval for the temperature of your cup of coffee?

Your local coffee shop charges $0.75 per ounce of coffee, and you devote at most $25...

Your local coffee shop charges $0.75 per ounce of coffee, and you devote at most $25 per week for coffee. (a) Graph your budget constraint. (b) What is the opportunity cost of coffee? (c) Your coffee shop has some left over holiday coffee that it wants to get rid of. It decides to charge $0.50 per ounce for coffee beyond 7 ounces. Graph your new budget constraint. Please help with a, b and c

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Visit a local retailer and while you are there, you need to find a NEW product. It could be identified on the store shelf or on the packaging of the product, but be sure it is identified as NEW to the market. Then, please answer the following questions: What is the name of the product? Do you think this product is increasing the breadth or the depth of the product line? Why did you choose your answers? Support this argument...

Customers in the Sunrise Coffee Shop are asked how much they spend on coffee per week. For Exercises identify the sampling method that

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Visit a local retailer and observe how long customers spend observing/comparing brands at the point of purchase (i.e. how many brands do they consider, how long they spend with each brand, etc.) and whether they eventually settle and decide to make a purchase. This article concentrates on online behavior and considering your observations of "live" customer interaction explain how those behaviors could be incorporated into BT in an online environment.

Case study continued (questions 9–12) When you meet with Imogen at a local coffee shop for...

Case study continued (questions 9–12) When you meet with Imogen at a local coffee shop for their regular catch-up, Imogen tells you how things are going. You say, ‘I still get quite wound up sometimes, but I feel pretty good on the whole’. You suggest that Imogen continues to review and monitor her stress management plan and the next time they meet, you can go through and review whether or not it is working effectively. For the next month, Imogen...

Question 1: A businesswoman is considering whether to open a coffee shop in a local shopping...

Question 1: A businesswoman is considering whether to open a coffee shop in a local shopping center. Before making this decision, she wants to know how much money people spend per week at coffee shops in that area. She took a random sample of 26 customers from the area who visit coffee shops and asked them to record the amount of money (in dollars) they would spend during the next week at coffee shops. At the end of the week,...

A businesswoman is considering whether to open a coffee shop in a local shopping center. Before...

A businesswoman is considering whether to open a coffee shop in a local shopping center. Before making this decision, she wants to know how much money people spend per week at coffee shops in that area. She took a random sample of 26 customers from the area who visit coffee shops and asked them to record the amount of money (in dollars) they would spend during the next week at coffee shops. At the end of the week, she obtained...

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