Andrew is buying salad and pizza for a company lunch. Suppose that a bowl of salad costs $5.00, and a slice of pizza costs $2.00. Let E be the amount in dollars that Andrew spends on salad and pizza. If Andrew buys S bowls of salad and P slices of pizza, then the total amount of money he spends (E) can be represented by the equation Now rearrange the equation you wrote above so that P is written in terms of E and S. The quantity of pizza he buys can be represented by the equation Suppose Andrew has $40.00 to spend on salad and pizza; that is, E = $40.00.

Andrew is buying salad and pizza for a company lunch. Suppose that a bowl of salad costs $5.00, and a slice of pizza costs $2.00. Let E be the amount in dollars that Andrew spends on salad and pizza. If Andrew buys S bowls of salad and P slices of pizza, then the total amount of money he spends (E) can be represented by the equation Now rearrange the equation you wrote above so that P is written in terms of E and S. The quantity of pizza he buys can be represented by the equation Suppose Andrew has $40.00 to spend on salad and pizza; that is, E = $40.00.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Revealed Preferences and Budget Constraint Analysis

Revealed means “Let Out,” and Preference means “Choice”; Choice Reveals Preference.

Question

Andrew is buying salad and pizza for a company lunch. Suppose that a bowl of salad costs $5.00, and a slice of pizza costs $2.00.
Let E be the amount in dollars that Andrew spends on salad and pizza. If Andrew buys S bowls of salad and P slices of pizza, then the total amount of
money he spends (E) can be represented by the equation
Now rearrange the equation you wrote above so that P is written in terms of E and S. The quantity of pizza he buys can be represented by the
equation
Suppose Andrew has $40.00 to spend on salad and pizza; that is, E = $40.00.

Complete the following table with the values of S or P that make the equation true.
Hint: To complete the first row, determine the number of pizza slices Andrew can purchase with $40.00, when the number of salad bowls he
purchases is 0.
Budget
Salad
Pizza
(Dollars)
(Bowls)
(Slices)
40.00
40.00
4
40.00

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