This week Sara’s income falls from $12 to $9 a week, while the price of popcorn is unchanged at $3 a bag and the price of a smoothie is unchanged at $3. h. What is the effect of the fall in Sara’s income on the relative price of a smoothie in terms of popcorn? What is the slope of Sara’s new budget line if it is drawn with smoothies on the x-axis?
This week Sara’s income falls from $12 to $9 a week, while the price of popcorn is unchanged at $3 a bag and the price of a smoothie is unchanged at $3. h. What is the effect of the fall in Sara’s income on the relative price of a smoothie in terms of popcorn? What is the slope of Sara’s new budget line if it is drawn with smoothies on the x-axis?
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section: Chapter Questions
Problem 1PA
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This week Sara’s income falls from $12 to $9 a week, while the
unchanged at $3 a bag and the price of a smoothie is unchanged at $3.
h. What is the effect of the fall in Sara’s income on the relative price of a smoothie
in terms of popcorn? What is the slope of Sara’s new budget line if it is drawn
with smoothies on the x-axis?
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