Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF = $5 and PC = $20. 400 units of Food, 100 units of Clothing (g) The opportunity cost of one piece of clothing is ___ units of food. h) If Maria’s income rises to $3,000, the new intercepts of her budget line are _____ F and _____ C. (i) Graph this new budget line on your graph for item (d) above.

Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF = $5 and PC = $20. 400 units of Food, 100 units of Clothing (g) The opportunity cost of one piece of clothing is _ units of food. h) If Maria’s income rises to $3,000, the new intercepts of her budget line are _ F and ___ C. (i) Graph this new budget line on your graph for item (d) above.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter6: Consumer Choice And Demand

Section: Chapter Questions

Problem 2QFR

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Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF = $5 and PC = $20.

400 units of Food, 100 units of Clothing

(g) The opportunity cost of one piece of clothing is ___ units of food.

h) If Maria’s income rises to $3,000, the new intercepts of her budget line are _____ F and _____ C.

(i) Graph this new budget line on your graph for item (d) above.

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