A university is deciding between two meal plans. One plan charges a fixed fee of $600 per semester and allows students to eat as much as they want. The other plan charges a fee based on the quantity of food consumed. Under which plan will students eat the most? Explain through economic theory.

Students will eat the most under the fixed fee plan.

Explanation: The fixed fee plan whereby students can eat as much as they can after paying a one - time semester fee of $600 seems to provides students with a breakthrough from consumption constraint. One of the major factors which hampers the consumption rate of an individual is income. However, once there is no need to pay any additional fee aside the first payment, the issue of eveluating one's income when about to eat is expunged. The other plan seems expensive and will have a greater impact on student's income as the cost of food will increase with the number of meals taken therefore allowing student's to be more prudent in their consumption.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o

hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi