o make sure he has enough energy for the teaching, Ernie spares $60 every week to spend on Blue Bull and Gigantic energy drinks. A can of Blue Bull costs $2, and a can of Gigantic costs $3. Assume that fractions of a can are allowed. (a) Draw Ernie’s budget line, measuring Blue Bull on the horizontal axis and Gigantic on the vertical axis. (b) How many cans of Gigantic can Ernie afford if he buys 15 cans of Blue Bull? (c) What is the maximum number of cans of Blue Bull Ernie can afford? (d) What is the slope of the budget line? Be sure to include the sign. Explain in words what this slope measures.

o make sure he has enough energy for the teaching, Ernie spares $60 every week to spend on Blue Bull and Gigantic energy drinks. A can of Blue Bull costs $2, and a can of Gigantic costs $3. Assume that fractions of a can are allowed. (a) Draw Ernie’s budget line, measuring Blue Bull on the horizontal axis and Gigantic on the vertical axis. (b) How many cans of Gigantic can Ernie afford if he buys 15 cans of Blue Bull? (c) What is the maximum number of cans of Blue Bull Ernie can afford? (d) What is the slope of the budget line? Be sure to include the sign. Explain in words what this slope measures.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 19CTQ: Suppose Alphonsos town raises the price of bus tickets from 0.50 to 1 and file price of burgers...

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Microeconomics - Budget Line (BL) Ethan is a collector of pokemon cards and stickers. He has $56 given by his dad to spend on his collection. The store sells them at $14 per pokemon cards and $7 for the stickers. 1. If Ethan spends all his money on pokemon cards, what is the maximum unit that he can purchase based on the given budget? 2. If Ethan spends all his money on stickers, what is the maximum unit that he can purchase based on the given budget? 3. Show in an illustration where pokemon cards is in the x-axis and y-axis is the sticker.
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Hi, just wondering why (1+r) is shown in the budget constraint, rather than 1/(1+r)