While abroad for a convention, Kevin spent all of the local currency he had in order...

While abroad for a convention, Kevin spent all of the local currency he had in order to buy 1 pair of pants and 9 bananas. Pants cost 9 units of the local currency per pair and he had 18 units of currency. Let p denote the number of pants and b denote the number of bananas. Write down an equation describing the set of all bundles of these two commodities that he could have just afforded with the local currency he had (i.e., completely using up all the local currency). Please show all work!

Expert Solution

Assume that Kevin has a total of M units of local currency. With this money he purchase is one pair of pants and 9 Bananas. We are given that the cost of a pair of pants is 9 units of local currency and he had a total of 18 units of currency. This indicates that with the remaining money of 9 units of local currency he purchases 9 Bananas. This implies that the price of Bananas is one unit of local currency.

Now assume that the number of pants purchased by him is denoted with p and the number of Bananas purchased by him is denoted with b. With an income of M units of local currency, the budget equation is given by

Income = price of a pair of pant x the number of pair of pants + price of 1 unit of banana x quantity of Bananas

M = 9 x p + 1 x b

18 = 9p + b

The last equation describes the set of all the bundles of these two commodities that Kevin could have just awarded with the local currency he had. If he purchases one pair of pant and 9 Bananas, all his income is exhausted. He can maximum purchase 18 Bananas or two pair of pants.

Rahul Sunny answered 2 years ago

BMI as a vital sign. Insured that all patients in local community clinics had their height...

BMI as a vital sign. Insured that all patients in local community clinics had their height and weight measured at each visit through provider education and training and referral system development (reached over 7,500 clinic patients). ? Breastfeeding policy. Implemented policies to promote breastfeeding in clinics, educated patients and clinic employees on the value of breastfeeding, and built capacity for more certified lactation specialists. Documented rates of exclusive breastfeeding from 7.7% in January 2005 to 20.2% in November 2009 (reached...

Stan owned PureHands, a business that sold hand sanitizer. He knew that two local hotels had...

Stan owned PureHands, a business that sold hand sanitizer. He knew that two local hotels had just installed a large number of hand sanitizing stations and were buying all of their hand sanitizer from his competitor, GermAway. Stan went to the Hotel Aja, and asked the Purchasing Director if she would consider buying the hotel’s hand sanitizer from him. The director said that she could not do it, because she was bound by a three-year contract to buy all hand...

Jack had been working on his gas furnace all afternoon. He finally thought that he fixed...

Jack had been working on his gas furnace all afternoon. He finally thought that he fixed the old, dilapidated furnace. It was going to get really cold that evening so he wanted to make sure that the furnace would keep them warm all night. Jack went to bed at 11:00 p.m. as usual but he noticed that he had a slight headache before going to bed. He just thought that he needed to sleep. His wife and kids also had...

Bill is an aging snowboard instructor at a local ski resort. All winter, he takes over...

Bill is an aging snowboard instructor at a local ski resort. All winter, he takes over the counter pain medication to deal with his aching joints. Each summer, he moves home with his parents and takes a part time job making minimum wage. This summer, he got qualified for and enrolled into state government subsidized health insurance. Now he plans to undergo arthroscopic surgery by the end of the summer to repair his knee. Use the terms insurance, third party...

A 53-year-old newly married male had just returned from Mozambique where he spent his honeymoon. Two...

A 53-year-old newly married male had just returned from Mozambique where he spent his honeymoon. Two weeks later, he developed nausea and vomiting, abdominal pain, high fever and chills. He was admitted to hospital where thrombocytopenia and spleen enlargement were observed. When a diagnostic test was done, it revealed positive results indicating an infection with Plasmodium falciparum, and he was immediately treated with IV chloroquine. a. Which disease can be caused by P. falciparum? b. Discuss the plasmodium lifecycle in...

An individual is presented with three different glasses of cola, labeled C, D, and P. He is asked to taste all three and then list them in order of preference. Suppose the same cola has actually been put into all three glasses.

An individual is presented with three different glasses of cola, labeled C, D, and P. He is asked to taste all three and then list them in order of preference. Suppose the same cola has actually been put into all three glasses. (a) What are the simple events in this ranking experiment, and what probability would you assign to each one? (b) What is the probability that C is ranked first? (c) What is the probability that C is ranked...

Question