Business, 20.01.2020 21:31 amoore51

Suppose there are only two types of goods to consume: food and leisure. an average californian citizen has a daily income of $100. the price of one meal of food is $20 and the price (or value) of one unit of leisure is $10. an average citizen in mississippi has a daily income of $50. the price of one unit of food is $10 and the price (or value) of one unit of leisure is $10. who is more well-off in terms of the bundles of goods they can consume? (hint: draw budget sets.)

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Answer from: scott5315

Californian citizen

Explanation:

For a Californian citizen, the maximum number of meals and units of leisure they could possibly acquire per day are:

$M_C = \frac{\$100}{\$20} =5\\L_C = \frac{\$100}{\$10} =10$

For a Mississippi citizen, the maximum number of meals and units of leisure they could possibly acquire per day are:

$M_M = \frac{\$50}{\$10} =5\\L_M = \frac{\$50}{\$10} =5$

Both citizens can acquire the same number of meals, but the Californian citizen can acquire twice as many units of leisure than the Mississippi citizen. Therefore, the Californian citizen is more well-off in terms of the bundles of goods they can consume.

Answer from: Quest

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans.

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.

Answer from: Quest

The answer is: deducting liabilities from assets and dividing the remainder by the number of shares of stock outstanding! hope this ! (:

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Suppose there are only two types of goods to consume: food and leisure. an average californian citi...

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