Asked by Gloria Martin-Mays on May 14, 2024
Verified
Refer to Figure 21-18. Suppose Kevin is optimally purchasing 12 shirts and 28 sweaters, and he is spending $648 on shirts. What is the price of a sweater?
Optimum Purchasing
The process of buying goods and services in the most efficient and cost-effective manner, maximizing value for the purchaser.
Sweaters
Garments intended for upper body warmth, traditionally made from wool but now also from synthetic fibers.
Shirts
Garments for the upper body, typically with sleeves and a collar, and often used as everyday wear or formal attire.
- Assess and interpret the pricing of items taking into account budget constraints and consumer tastes.
Verified Answer
RD
Robbie DombrowskiMay 15, 2024
Final Answer :
Given that Kevin is optimally purchasing 12 shirts and 28 sweaters, point A is his optimum, and his budget constraint is the inner one. The price of a shirt is $648/12 = $54, and his income is
$54×35=$1,890\$ 54 \times 35 = \$ 1,890$54×35=$1,890 Then the price of sweater is $1,890/42 = $45.
$54×35=$1,890\$ 54 \times 35 = \$ 1,890$54×35=$1,890 Then the price of sweater is $1,890/42 = $45.
Learning Objectives
- Assess and interpret the pricing of items taking into account budget constraints and consumer tastes.