Lorenzo brings $60 to a football game to spend on hot dogs and beer. The following diagram shows his budget constraint: 27 24 BC 18 15 30 21 ES OF BEER
Lorenzo brings $60 to a football game to spend on hot dogs and beer. The following diagram shows his budget constraint: 27 24 BC 18 15 30 21 ES OF BEER
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:de LO
30
24
3.
27
GLASSES OF BEER
2. Shifts in a budget constraint
Lorenzo brings $60 to a football game to spend on hot dogs and beer. The following diagram shows his budget constraint:
24
21
18
15
12
3
3
12
15
18
21
27
9.
6.
HOT DOGS
According to the diagram, hot dogs cost $
each, and beer costs $
per glass.
Adjust the diagram to show how Lorenzo's budget constraint would change if the price of beer increased. (Assume the price of hot dogs and Lor
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