Jacob receives an allowance of $5 per week. He spends all his allowance on ce cream cones, $0.50 per cone, and cans of Lemon Fizz soda, $1 per can. His budget constraint is shown on the graph to the right. Now suppose hat Jacob's allowance climbs to $7. Show how this alters his budget i constraint. Jacob's new budget constraint intersects the x-axis at cans of soda. (Enter your response as a whole number.) Jacob's new budget constraint intersects the y-axis at ice cream cones. (Enter your response as a whole number.) ACCES Ice cream (number of cones) 20- 19- 18- 17- 16- 15- 14- 13- 12- 11- 10- 9- 8- 7- 6- 5- 4- 3- 2- 1- BC 9 10 11 12 Lemon Fizz (number of cans)

Jacob receives an allowance of $5 per week. He spends all his allowance on ce cream cones, $0.50 per cone, and cans of Lemon Fizz soda, $1 per can. His budget constraint is shown on the graph to the right. Now suppose hat Jacob's allowance climbs to $7. Show how this alters his budget i constraint. Jacob's new budget constraint intersects the x-axis at cans of soda. (Enter your response as a whole number.) Jacob's new budget constraint intersects the y-axis at ice cream cones. (Enter your response as a whole number.) ACCES Ice cream (number of cones) 20- 19- 18- 17- 16- 15- 14- 13- 12- 11- 10- 9- 8- 7- 6- 5- 4- 3- 2- 1- BC 9 10 11 12 Lemon Fizz (number of cans)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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