d. Draw Wendy's budget line for drinks for last week by taking smoothies onvertical axis and sugary drinks on horizontal axis. What is the slop of budgetline?e.Draw Wendy's budget line for drinks for this week on the same graph. How thenew budget line is different from the old one. Wendy drinks 10 sugary drinks and 4 smoothies a week. Smoothies are $5 each andsugary drinks were $2 each. This week, things are different: the government has slappeda tax on sugary drinks and their price has doubled to $4. But it's not all bad news forWendy. The government has also revised the income tax, so Wendy's drinks budget hasincreased. She can now just afford to buy her usual 10 sugary drinks and 4 smoothies aweek.

The budget is the mathematical relationship between the budget of a consumer and different bundles…

d. Draw Wendy's budget line for drinks for last week by taking smoothies on vertical axis and sugary drinks on horizontal axis. What is the slop of budget line? e. Draw Wendy's budget line for drinks for this week on the same graph. How the new budget line is different from the old one.

d. Draw Wendy's budget line for drinks for last week by taking smoothies on vertical axis and sugary drinks on horizontal axis. What is the slop of budget line? e. Draw Wendy's budget line for drinks for this week on the same graph. How the new budget line is different from the old one.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

d. Draw Wendy's budget line for drinks for last week by taking smoothies on
vertical axis and sugary drinks on horizontal axis. What is the slop of budget
line?
e.
Draw Wendy's budget line for drinks for this week on the same graph. How the
new budget line is different from the old one.

Wendy drinks 10 sugary drinks and 4 smoothies a week. Smoothies are $5 each and
sugary drinks were $2 each. This week, things are different: the government has slapped
a tax on sugary drinks and their price has doubled to $4. But it's not all bad news for
Wendy. The government has also revised the income tax, so Wendy's drinks budget has
increased. She can now just afford to buy her usual 10 sugary drinks and 4 smoothies a
week.

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