4. Which combinations of burritos and sodas are unaffordable--those to the left of the line in the graph or those above the line in the graph? Why?
4. Which combinations of burritos and sodas are unaffordable--those to the left of the line in the graph or those above the line in the graph? Why?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter11: Marketing And Distribution
Section: Chapter Questions
Problem 11AA
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Transcribed Image Text:Use the following information to answer questions 1 through 8:
A student has a monthly budget of $120 to spend on either burritos, which cost $6 each, or
sodas, which cost $4 each.
1. What is the largest number of burritos that the student could afford to purchase in one
month?
2. What is the largest number of sodas the student could afford to purchase in one month?
3. Draw the student's budget constraint. Put burritos on the x-axis and sodas on the y-axis.
60+
-50
40
-30
-20
-10+
10
20
30
40
50
60
Transcribed Image Text:4. Which combinations of burritos and sodas are unaffordable--those to the left of the line
in the graph or those above the line in the graph? Why?
5. Which combinations would leave some budget unspent - those to the left of the line in
the above graph or those to the right of the line in the above graph?
6. What is the equation for the student's budget constraint? In your equation, use Q1 as the
variable to represent the quantity of burritos and Q2 to represent the quantity of sodas.
7. What is the opportunity cost of a burrito?
8. What is the opportunity cost of a soda?
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