CHA PTER 2 Budget Constraint 了;Rt(atit Dinic.at (cnetrescss o DiSlmirdtnirce. o cnetalsee Eily fo w atstosainse ew egtsothathe anpa rOtan. Eily fatsan, m ikshaes Irah, Mlksh ak.&thlm S1 <& ads Iah aqiesadasgigos iah has 200 caas hiy e Ieers, arsmaethans20 aca n rcdadheaw as aisin Sati ats000 caamsperca Whih o thernQigsieessani tne (a) Billy Bob consumes at least 9 milkshakes a day (b) Billy Bob never consumes more than 6 servings of spinach a day (c) Billy Bob never consumes positive amounts of both goods (d) Billy Bob consumes only milkshakes (e) None of the above Fi. Ect thant icnetrtsasS 81 DICT'nlrctnulce. 21 cretans efp 22 a[ ctatcsardhemmg Whenthep n e@ p dateS,&,@ ISper ak adthe n ec hemirgw ass l@ is,er lk.hes atnserfreng eto ll. 5 saks p Ctatcesadio clOS Q hRgp Ermgth. NQthegoem entsus sp ctat(. Manet n. Sha ntchargd blt qrst esgt asus cs cl@ ISrareer sak g p ctatcesc m uh d topa rortissusc tespe etrficdiddann g efa. lasp asange ta (20 cl@ISp erm ain. Ifs shen bero sakS@p ctatcesarde stherimberoclOhs C hemg w hat isLassNEW bicgstelatr a)9s+5c=100 (b)14s+5c=95 e)14s+5c=120CHAPTER 2 Budget Constraint 10 Topic: Budget Constraint Diculty: 2 % Correct Responses: 0 Discrimination Index: 0 Correct Answer: B 2.19 Billy Bob wants to gain some weight so that he can play football. Billy eats only milkshakes and spinach. Milkshakes cost him $1 each and spinach costs $2 per serving. A milkshake has 850 calories and a serving of spinach has 200 calories. Billy Bob never spends more than $20 a day on food and he always consumes at least 8000 calories per day. Which of the following is necessarily true? (a) Billy Bob consumes at least 9 milkshakes a day. (b) Billy Bob never consumes more than 6 servings of spinach a day. (c) Billy Bob never consumes positive amounts of both goods. (d) Billy Bob consumes only milkshakes. (e) None of the above. Topic: Budget Constraint Diculty: 2 % Correct Responses: 81 Discrimination Index: 21 Correct Answer: D 2.20 Lars consumes only potatoes and herring. When the price of potatoes was 9 crowns per sack and the price of herring was 5 crowns per crock, he spent his entire income to buy 5 sacks of potatoes and 10 crocks of herring per month. Now the government subsidizes potatoes. Market prices haven't changed, but consumers get a subsidy of 5 crowns for every sack of potatoes con￾sumed. To pay for this subsidy, the government introduced an income tax. Lars pays an income tax of 20 crowns per month. If s is the number of sacks of potatoes and c is the number of crocks of herring, what is Lars's NEW budget equation? (a) 9s + 5c = 100. (b) 14s + 5c = 95. (c) 4s + 5c = 95. (d) 4s + 5c = 75. (e) 14s + 5c = 120