In 2005, Sam survives on peanuts and lemonade. A bag of peanuts costs $1, and a bottle of lemonade costs $2. His weekly income is $30. He buys 10 bags of peanuts and 10 bottles of lemonade each week. In 2006, his weekly income rises to $40. At the same time, the price of peanuts rises to $1.50 and the price of lemonade rises to $2.50. Sam is equally well off in both years Sam is better off in 2005 Sam is better off in 2006 We don't have enough information to say whether Sam is better off in 2005 or 2006.

In 2005, Sam survives on peanuts and lemonade. A bag of peanuts costs $1, and a bottle of lemonade costs $2. His weekly income is $30. He buys 10 bags of peanuts and 10 bottles of lemonade each week. In 2006, his weekly income rises to $40. At the same time, the price of peanuts rises to $1.50 and the price of lemonade rises to $2.50. Sam is equally well off in both years Sam is better off in 2005 Sam is better off in 2006 We don't have enough information to say whether Sam is better off in 2005 or 2006.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter1: Introducing The Economic Way Of Thinking

Section1.A: Applying Graphs To Economics

Problem 2SQP

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