9. Beth earns $500 per month as a college student. She spends $100 on groceries and she splits the rest equally between entertainment and savings. She can spend her grocery money on ramen for $1 per brick or on pretzels for $2 per bag. Task Draw a budget constraint for groceries. What is the slope? Graphically depict the budget constraint if the price of pretzels increases to $4. How is her budget constraint for ramen and pretzels affected if her income increases to $480?
9. Beth earns $500 per month as a college student. She spends $100 on groceries and she splits the rest equally between entertainment and savings. She can spend her grocery money on ramen for $1 per brick or on pretzels for $2 per bag. Task Draw a budget constraint for groceries. What is the slope? Graphically depict the budget constraint if the price of pretzels increases to $4. How is her budget constraint for ramen and pretzels affected if her income increases to $480?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 4SQP
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Transcribed Image Text:9.
Beth earns $500 per month as a college student. She spends $100 on groceries and she splits the
rest equally between entertainment and savings.
She can spend her grocery money on ramen for $1 per brick or on pretzels for $2 per bag.
Task
Draw a budget constraint for groceries. What is the slope?
Graphically depict the budget constraint if the price of pretzels increases to $4.
How is her budget constraint for ramen and pretzels affected if her income increases to $480?
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