a.What was Wendy's drinks (sugary drinks and smoothies) budget last week andwhat is it this week.b. What was Wendy's opportunity cost of a sugary drink last week and what is itthis week?c. Does Wendy buy 10 sugary drinks and 4 smoothies this week? Explain. Wendy drinks 10 sugary drinks and 4 smoothies a week. Smoothies are $5 each andsugary drinks were $2 each. This week, things are different: the government has slappeda tax on sugary drinks and their price has doubled to $4. But it's not all bad news forWendy. The government has also revised the income tax, so Wendy's drinks budget hasincreased. She can now just afford to buy her usual 10 sugary drinks and 4 smoothies aweek.

A budget line shows various combinations of two goods a consumer can purchase by spending all income…

a. What was Wendy's drinks (sugary drinks and smoothies) budget last week and what is it this week. b. What was Wendy's opportunity cost of a sugary drink last week and what is it this week? c. Does Wendy buy 10 sugary drinks and 4 smoothies this week? Explain.

a. What was Wendy's drinks (sugary drinks and smoothies) budget last week and what is it this week. b. What was Wendy's opportunity cost of a sugary drink last week and what is it this week? c. Does Wendy buy 10 sugary drinks and 4 smoothies this week? Explain.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

a.
What was Wendy's drinks (sugary drinks and smoothies) budget last week and
what is it this week.
b. What was Wendy's opportunity cost of a sugary drink last week and what is it
this week?
c. Does Wendy buy 10 sugary drinks and 4 smoothies this week? Explain.

Wendy drinks 10 sugary drinks and 4 smoothies a week. Smoothies are $5 each and
sugary drinks were $2 each. This week, things are different: the government has slapped
a tax on sugary drinks and their price has doubled to $4. But it's not all bad news for
Wendy. The government has also revised the income tax, so Wendy's drinks budget has
increased. She can now just afford to buy her usual 10 sugary drinks and 4 smoothies a
week.

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