The president of LeTall University, President John, spends $30 per week on pizzas (qz) and beers (qb). At LeTall Pizza, his go-to pizza joint, pizza costs $3 per slice and beer also costs $3 per can. Assume fractions of the goods are allowed. (a) Draw President John’s budget line (qb on the horizontal and qz on the vertical axis). (b) President John receives a coupon from LeTall Pizza. The coupon, which will expire in a week, allows him to buy a can of beer at a discounted price of $1 per can. It is, however, only good for a dozen cans of beer. Draw President John’s budget line under the coupon. Label any critical points on the budget line. (c) In another week, LeTall Pizza offers a special deal for pizza. For every half dozen slices of pizza bought during the week, one can get two additional slices for free. Draw President John’s budget line under the special deal. Label any critical points on the budget line
The president of LeTall University, President John, spends $30 per week on pizzas (qz)
and beers (qb). At LeTall Pizza, his go-to pizza joint, pizza costs $3 per slice and beer
also costs $3 per can. Assume fractions of the goods are allowed.
(a) Draw President John’s budget line (qb on the horizontal and qz on the vertical axis).
(b) President John receives a coupon from LeTall Pizza. The coupon, which will expire
in a week, allows him to buy a can of beer at a discounted price of $1 per can. It
is, however, only good for a dozen cans of beer. Draw President John’s budget line
under the coupon. Label any critical points on the budget line.
(c) In another week, LeTall Pizza offers a special deal for pizza. For every half dozen
slices of pizza bought during the week, one can get two additional slices for free.
Draw President John’s budget line under the special deal. Label any critical points
on the budget line.
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