A student has a monthly budget of $120 to spend on either burritos, which cost $6 each, or sodas, which cost $4 each. 1. What is the largest number of burritos that the student could afford to purchase in one month? 2. What is the largest number of sodas the student could afford to purchase in one month? 3. Draw the student's budget constraint. Put burritos on the x-axis and sodas on the y-axis. Graded Assignment due Monday 4. Which combinations of burritos and sodas are unaffordable--those to the left of the line in the graph or those above the line in the graph? Why? 5. Which combinations would leave some budget unspent - those to the left of the line in the above graph or those to the right of the line in the above graph? 6. What is the equation for the student's budget constraint? In your equation, use Q1 as the variable to represent the quantity of burritos and Q2 to represent the quantity of sodas. 7. What is the opportunity cost of a burrito? 8. What is the opportunity cost of a soda? 9. The local farmer's market offers 1 bag of cilantro for $6 or 2 bags for $10. What's the marginal cost of the second bag?
A student has a monthly budget of $120 to spend on either
burritos, which cost $6 each, or sodas, which cost $4 each.
1. What is the largest number of burritos that the student
could afford to purchase in one month?
2. What is the largest number of sodas the student could
afford to purchase in one month?
3. Draw the student's budget constraint. Put burritos on the
x-axis and sodas on the y-axis.
Graded Assignment due Monday
4. Which combinations of burritos and sodas are unaffordable--those to
the left of the line in the graph or those above the line in the graph? Why?
5. Which combinations would leave some budget unspent - those to the
left of the line in the above graph or those to the right of the line in the
above graph?
6. What is the equation for the student's budget constraint? In your
equation, use Q1 as the variable to represent the quantity of burritos and
Q2 to represent the quantity of sodas.
7. What is the opportunity cost of a burrito?
8. What is the opportunity cost of a soda?
9. The local farmer's market offers 1 bag of cilantro for $6 or 2 bags for
$10. What's the marginal cost of the second bag?
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