Tim is buying pizza and salad for a company lunch. Suppose that a slice of pizza costs $4.00, and a bowl of salad costs $5.00. Let be the amount in dollars that Tim spends on pizza and salad. If Tim buys. P slices of pizza and S bowls of salad, then the total amount of money he spends (B) can be represented by the equation Now rearrange the equation you wrote above so that S is written in terms of E and P. The quantity of salad he buys can be represented by the equation Suppose Tim has $40.00 to spend on pizza and salad; that is, $40.00. Complete the following table with the values of P or S that make the equation true. Hint: To complete the first row, determine the number of salad bowls Tim can purchase with $40.00, when the number of pizza slices he purchases is 0. Budget Pizza (Dollars) (Slices) 40.00 0 40.00 5 40.00 Use the black line (Plus symbols) to plot the line illustrating the combinations of pizza and salad that Tim can purchase with a budget of $40.00. SALAD (Bows) 12 10 2 0 2 Salad (Bowls) 4 8 8 PIZZA (Slices) 10 + 12 Initial Budget New Budget Now suppose Tim's income is cut in half: That is, he has 50% less money to spend than he did before. On the previous graph, use the blue line (circle symbols) to plot Tim's new budget constraint. Which of the following statements best summarizes the pattern of causality captured by the graph above? Check all that apply. DA change in E causes a shift of the budget constraint. DA change in P causes a change in S.
Tim is buying pizza and salad for a company lunch. Suppose that a slice of pizza costs $4.00, and a bowl of salad costs $5.00. Let be the amount in dollars that Tim spends on pizza and salad. If Tim buys. P slices of pizza and S bowls of salad, then the total amount of money he spends (B) can be represented by the equation Now rearrange the equation you wrote above so that S is written in terms of E and P. The quantity of salad he buys can be represented by the equation Suppose Tim has $40.00 to spend on pizza and salad; that is, $40.00. Complete the following table with the values of P or S that make the equation true. Hint: To complete the first row, determine the number of salad bowls Tim can purchase with $40.00, when the number of pizza slices he purchases is 0. Budget Pizza (Dollars) (Slices) 40.00 0 40.00 5 40.00 Use the black line (Plus symbols) to plot the line illustrating the combinations of pizza and salad that Tim can purchase with a budget of $40.00. SALAD (Bows) 12 10 2 0 2 Salad (Bowls) 4 8 8 PIZZA (Slices) 10 + 12 Initial Budget New Budget Now suppose Tim's income is cut in half: That is, he has 50% less money to spend than he did before. On the previous graph, use the blue line (circle symbols) to plot Tim's new budget constraint. Which of the following statements best summarizes the pattern of causality captured by the graph above? Check all that apply. DA change in E causes a shift of the budget constraint. DA change in P causes a change in S.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Tim is buying pizza and salad for a company lunch. Suppose that a slice of pizza costs $4.00, and a bowl of salad costs $5.00.
Let ♬ be the amount in dollars that Tim spends on pizza and salad. If Tim buys P slices of pizza and S bowls of salad, then the total amount of money
he spends (B) can be represented by the equation
Now rearrange the equation you wrote above so that S is written in terms of E and P. The quantity of salad he buys can be represented by the
equation
Suppose Tim has $40.00 to spend on pizza and salad; that is, E = $40.00.
Complete the following table with the values of P or S that make the equation true.
Hint: To complete the first row, determine the number of salad bowls Tim can purchase with $40.00, when the number of pizza slices he purchases is
0.
Budget
Pizza
(Dollars) (Slices)
40.00
0
40.00
5
40.00
Use the black line (plus symbols) to plot the line illustrating the combinations of pizza and salad that Tim can purchase with a budget of $40.00.
SALAD (Bowis)
14
12
10
04
Salad
(Bowls)
2
8
8
PIZZA (Slices)
10
12
14
Initial Budget
New Budget
Now suppose Tim's income is cut in half: That is, he has 50% less money to spend than he did before.
On the previous graph, use the blue line (circle symbols) to plot Tim's new budget constraint.
Which of the following statements best summarizes the pattern of causality captured by the graph above? Check all that apply.
□ A change in E causes a shift of the budget constraint.
A change in P causes a change in S.
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