Nobody downloaded yet

Explanation of the graphics figures upon budget - Assignment Example

Comments (0) Cite this document
In the diagram below Linda’s budget set is depicted when she is in Adelaide. The vertical axis measures expenditure on food while the horizontal axis measures her expenditure on clothing. With her present income and given the prices of food and clothing …
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.5% of users find it useful
Explanation of the graphics figures upon budget
Read TextPreview

Extract of sample
"Explanation of the graphics figures upon budget"

Download file to see previous pages The budget line implies that if Susan spent all her income on clothing she would be able to purchase OB units of it. If on the other hand, Susan spent all her income on food, she would be able to purchase OA units of food. If she allocates her income on both goods then all combinations of food and clothing she can attain are those on or within the line AB. Thus the triangle OAB defines the combinations of food and clothing attainable by Susan, given her income and the prices of food and clothing.
Assuming that Susan is rational, and the law of diminishing marginal utility holds for both goods, and she has continuous and complete preferences, her preferences can be depicted by downward sloping convex indifference curves. Susan’s objective is to attain the highest possible indifference curve within the reach of her budget set. This is shown in figure 2. Figure 2: the utility maximising choice in Adelaide As shown above in figure 2, given her budget constraint, Susan’s utility maximizing choice in Adelaide is point E. She consumes OC of food and OD of clothing and this generates the level of utility denoted by the indifference curve IC1. Linda is aware that in Melbourne the prices of both goods are higher and that food is relatively more expensive than clothing compared to the situation in Adelaide. Therefore, with her present income (that she earns by working in Adelaide) Susan will be able to by lesser of both food and clothing. Additionally, because food is relatively more expensive, not only she will be able to buy less of food if she invests all her income in food compared to the amount of food she would be able to buy in Adelaide, the reduction in the amount of food she can buy will be more than the reduction in the amount of clothing she will be able to buy. What this implies is that i) her budget line will shrink inwards and ii) it will be relatively more flat compared to her budget line in Adelaide. This is depicted in figure 3. Figure 3: FG - Susan's budget line in Melbourne if her income remains equal to her Adelaide income In the diagram above, FG is Susan’s budget line in Melbourne if her income remains unchanged. Observe that not only can she buy fewer amounts of either products, the reduction in her capacity to purchase clothing had she chosen to invest all her income in clothing, depicted by the amount GB in the figure above, is less than the reduction in the amount of food she can buy if she invests all her income in food, AF. This is implied by the fact that food is relatively more expensive than clothing in Melbourne. Figure 4: Susan's new budget set relative to her old preferred bundle and utility level. Therefore, as reflected in figure 4, Susan can no longer access the utility level denoted by the indifference curve IC1 and nor can she afford the commodity bundle she preferred when she was in Adelaide. Therefore her real income will fall if she has to move to Melbourne but her income is still as it was back in Adelaide. Linda, if she has to make sure Susan accepts the offer, will have to pay her enough to ensure that her real income is at least as high as it is presently in Adelaide. There are two possible ways of achieving this. I. If Susan is paid an income so that she can purchase a commodity bundle that places her again at the utility level IC1. This implies paying her an income over her present Adelaide income that will allow her to access her old indifference curve IC1. This would be what is termed as the Hicksian compensation. The idea is that Susan will be back at her old real income level if she has access to her old utility level. Figure 5: The Hicksian Compensation - PQ ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
(“Explanation of the graphics figures upon budget Assignment”, n.d.)
Retrieved de
(Explanation of the Graphics Figures Upon Budget Assignment)
“Explanation of the Graphics Figures Upon Budget Assignment”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document
...the available income will suffice to finance the anticipated expenditure (Millett, 2011). On the other hand, budget forecast, utilizes financial figures for previous period to come up with figures for the current period (Brookson, 2000). Therefore, it can be scrutinize that budget is a very important tool that can help to monitor revenues and avoid unnecessary spending (Millett, 2011). This assignment will focus on determining strategies for managing budget within forecast by comparing expenses with the budget and determining the possible reasons for a variance. Additionally, bench marking techniques will be identified and how they can...
5 Pages(1250 words)Assignment
Religious figures
...? of the Religious Figures: Mahavira (Eastern Religions) and Abraham (Western Religions) People follow different religions based on their beliefs and upbringing. There are Buddhism, Islam, Jainism, Judaism, Christianity and many more. In this paper, we will discuss about Mahavira, the preacher of one of eastern religions and Abraham, the preacher of one of western religions. We will highlight the lives and teachings of the two religious figures analyzing their similarities and differences. According to the History, Lord Mahavir was the last Tirthankara of the Jain religion. As per the Jain methodology all Tirthankaras were human beings. They acquired the status of perfection / enlightenment after passing...
6 Pages(1500 words)Term Paper
Computer Graphics
...into 8x8 pixel blocks, and Discrete Cosine Transformation (image transformation from spatial domain to frequency domain representation) encoding stage that includes Quantization (sorting the output waveform of DCT), Zigzag Scan (sorting the frequency coefficients from low to high), and Entropy Coding (Huffman Coding and Arithmetic Coding). Figure 1: JPEG Compression Technique (Wallace, Gregory. 2001. pp4) Figure 2: JPEG Decompression Technique (Wallace, Gregory. 2001. pp4) The encoding and decoding algorithms for JPEG images are shown in figures 1 and 2 respectively. Compression is used to reduce the file sizes such that they can be used on web pages or documentation or any other...
5 Pages(1250 words)Essay
Posthuman Figures
...POSTHUMAN FIGURES: RETHINKING NOTIONS OF IVITY Introduction This paper aims to explore how posthuman figures of difference help us rethink our subjectivity through a TV programme as a reference. It shall look at how cultural identity is organised around points of difference, the idea of the body as Other, and long history of fascination with bodies that don't conform, which challenge the idea of the Enlightenment subject and exposes our cultural anxieties. It is also important to critically analyse the notion of the posthuman and the notion of the "other" in addressing these points. "The posthuman view privileges informational pattern over material instantiation, so that embodiment in a biological substrate is seen as an accident... it...
8 Pages(2000 words)Movie Review
Information Graphics
...a newspaper Information graphic on a breaking news mishap is likely to devotedly record, by means of visuals, what has been clarified in the additional text (Rajamanickam, 2007). Information graphics play a major role in a White Paper, web sites, books, etc. for the reason that they can visually represent the vital information briefly and concisely (Rispens, 2007). Info-graphics communicate details and complicated associations; they represent figures and data without a doubt and can be recognized appropriately at a quick look. Info-graphics are considered to evoke emotions: The images of an info-graphic can stimulate eagerness,...
8 Pages(2000 words)Assignment
Digital graphics
...Digital Graphics: Unit Task Limitations of different hardware and software packages used in graphics work. Laser Printer Inkjet Printer Resolution They have higher resolution hence better print quality They have lower resolution hence lower print quality Speed Have higher printing speed and produce more pages per minute Lower printing speed hence print fewer pages per minute Paper Handling very accurate and high and runs a lot of paper Handles lower volume of printing Colour Printing Produces high quality colour print Produces lower quality colour print Environmental Issues Can release dangerous amounts of ozone if not properly maintained Ink spills may destroy the environment Health & Safety...
2 Pages(500 words)Assignment
Style, Graphics
... are also used to present information of some given nature. The bars can be calibrated or scaled to give particular information upon interpretation. To emphasize some particular information, one can shade the bars by using different colors, one can also accompany the bars with brief explanations to make one understand the goal or what is presented in the bars for elaborate understanding. Charts can also be used to present some of the information given and translated into percentage presented into percentages. Charts can also be used to express the chains of command in an organization this gives an elaborate understanding of how the organization is managed. Employing the use of charts makes one to use a small space to communicate... Style,...
4 Pages(1000 words)Essay
Spending Figures
...Spending Figures US and Japan Healthcare spending figures Globally, the United s spends far more in terms of its health care than any other nation. According to the New York Times, the United States tends to spend more money on health care as compared to the other twelve industrialized nations thus Netherlands, Germany, France, Japan, Denmark, Canada among others (Wise & Yashiro, 2006). In 2009 alone, the United States spent a total of $8,000 per person on health care services as compared to Japan, which spent one-third of it on its health care. Unlike the United States, Japan tends to offer an interesting model in terms of its health care. In as much as the health care system almost shares several...
2 Pages(500 words)Admission/Application Essay
...Answers to Questions Q4 (a) The graphic does not indicate the exact purpose of the table presented. It provides majors with a list of disciplines onemay choose from academically but is it the information from one college, city or country remains a mystery. In addition, the figures seem confusing as they are neither titled as numbers in thousands nor are presented as the currency amount paid/received in a specified time period. In order to modify this table, I would revise the presentation by adding colors to the titles, provide exact unit of measure (i.e. in dollars or numbers of people enrolled, or the amount of money spent/received) and finally I would provide the information that is to be communicated...
2 Pages(500 words)Essay
Figures of Speech
...Figures of Speech Q1. You fit into me like a hook into the eye. Q2. Presentiment is that long Shadow on the lawn.Q3. “Hope is the thing that has got feathers.” That sits in the soul, And sings the melodies devoid of words, And never halts at all.” Q4. Time flies like a fly, fruits flies like a mango. Q5. Give me a hand. The pen is mightier than the sword. Q6. ‘Oh moon, with sad steps, you climb the skies’. Q7. Hyperbole means exaggeration, for example, ‘My devotion to church is higher than heavens’. Q8. Understatement/litotes means saying less than the actual, for example, ‘Atomic blast is a bit noisy’. Q9. The paradox is a contradictory statement that makes sense on closer look, for example, ‘I am a...
1 Pages(250 words)Essay
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Let us find you another Assignment on topic Explanation of the graphics figures upon budget for FREE!
Contact Us