3.5 Consider you will organize a party. Your budget is $2000 and you will providechampagne (pchampagne-$50) and oysters (poyster=$20).a) Show all possible combinations of champagne and oysters graphically.b) A friend adds $1000 to your party budget. What are the effects on your budget line?c) The store you usually buy your champagne is closed. Now you are forced to buy thechampagne at the store in the neighbor town. There the price of champagne is $75.What effect has the higher champagne price on your budget line (Budget $6000)?

Initially, the budget (M) is $2000 Price of champagne =$50 Price of oysters =$20 In the case of…

Consider you will organize a party. Your budget is $2000 and you will provide pagne (pchampagne-$50) and oysters (poyster=$20). O Show all possible combinations of champagne and oysters graphically. A friend adds $1000 to your party budget. What are the effects on your budget line? The store you usually buy your champagne is closed. Now you are forced to buy the champagne at the store in the neighbor town. There the price of champagne is $75. What effect has the higher champagne price on your budget line (Budget $6000)?

Consider you will organize a party. Your budget is $2000 and you will provide pagne (pchampagne-$50) and oysters (poyster=$20). O Show all possible combinations of champagne and oysters graphically. A friend adds $1000 to your party budget. What are the effects on your budget line? The store you usually buy your champagne is closed. Now you are forced to buy the champagne at the store in the neighbor town. There the price of champagne is $75. What effect has the higher champagne price on your budget line (Budget $6000)?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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