. Suppose you earn $1500 per week and you consume only two types of goods per week- sandwiches and orange juice, which you purchase at a mini mart. Each sandwich cost $150 and an orange juice is $75 per cup. a) Construct a table showing the alternative combinations of the two products that are available. b)Plot the data in your table on a budget line. What is the slope of the budget line? What is the opportunity cost of one more cup of orange juice? And what is opportunity cost of one more sandwich? Do these opportunity cost rise, fall or remain constant as you purchase an additional unit of the product? c)Suppose the price of a cup of orange juice increased to $150. Construct a new table showing alternative combinations of sandwiches and orange juice. Construct the new budget line.
1. Suppose you earn $1500 per week and you consume only two types of goods per week- sandwiches and orange juice, which you purchase at a mini mart. Each sandwich cost $150 and an orange juice is $75 per cup.
a) Construct a table showing the alternative combinations of the two products that are available.
b)Plot the data in your table on a budget line. What is the slope of the budget line? What is the
c)Suppose the
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Suppose your income increase from $1500 per week to $3000 per week.
Construct a new table showing alternative combinations of sandwiches
and cups of orange juice. Construct the new budget line. Why would this
budget line be preferred to the old one with an income of $1500?
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