Answer the given question with a proper explanation and step-by-step solution.If the price of a hot dog is $2, what is the optimal choice for Stewey?ABCD ateNStewey has been taken to Coney Island on a pretty Saturday and given $20 to spend. Stewey will spend the money onhot dogs and rides at the amusement park. The diagram below depicts two indifference curves for Stewey, as well astwo budget constraints based on two different prices for hot dogs. Use the diagram below to answer the following twoquestions.Hot Dogs1092187 8 9 10Rides12. If Stewey's opportunity cost of a hot dog is two rides, what is the price of hot dogs?a) $1b) $4c) $5d) $10

Budget constraint is the mathematical relationship between income and bundles of commodities at…

Answered: If the price of a hot dog is $2, what…

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If the price of a hot dog is $2, what is the optimal choice for Stewey? A B C D

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Chapter1: Making Economics Decisions

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Answer the given question with a proper explanation and step-by-step solution.

If the price of a hot dog is $2, what is the optimal choice for Stewey?

ate
N
Stewey has been taken to Coney Island on a pretty Saturday and given $20 to spend. Stewey will spend the money on
hot dogs and rides at the amusement park. The diagram below depicts two indifference curves for Stewey, as well as
two budget constraints based on two different prices for hot dogs. Use the diagram below to answer the following two
questions.
Hot Dogs
10
9
2
1
8
7 8 9 10
Rides
12. If Stewey's opportunity cost of a hot dog is two rides, what is the price of hot dogs?
a) $1
b) $4
c) $5
d) $10

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