4. Graph the budget line for each of the following circumstances. a. Consider Bobby's choice between watching movies on Netflix and all other consumption goods. Movies cost $5 to watch on Netflix. Bobby has cash income of $60 and a $20 Netflix gift card, which cannot be resold and must be used entirely during the current period. (Graph movies vs. money spent on all other goods here.) b. Monica purchases food and clothes and works at a clothing store. Her income is $300, the price of food is $10, and the price of clothes is $50. Monica receives an employee discount of the following form: She gets 50% off the price of all clothes items after purchasing 2 at the regular price.
4. Graph the budget line for each of the following circumstances. a. Consider Bobby's choice between watching movies on Netflix and all other consumption goods. Movies cost $5 to watch on Netflix. Bobby has cash income of $60 and a $20 Netflix gift card, which cannot be resold and must be used entirely during the current period. (Graph movies vs. money spent on all other goods here.) b. Monica purchases food and clothes and works at a clothing store. Her income is $300, the price of food is $10, and the price of clothes is $50. Monica receives an employee discount of the following form: She gets 50% off the price of all clothes items after purchasing 2 at the regular price.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:4. Graph the budget line for each of the following circumstances.
a.
Consider Bobby's choice between watching movies on Netflix and all other consumption
goods. Movies cost $5 to watch on Netflix. Bobby has cash income of $60 and a $20 Netflix
gift card, which cannot be resold and must be used entirely during the current period. (Graph
movies vs. money spent on all other goods here.)
b. Monica purchases food and clothes and works at a clothing store. Her income is $300,
the price of food is $10, and the price of clothes is $50. Monica receives an employee discount
of the following form: She gets 50% off the price of all clothes items after purchasing 2 at the
regular price.
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