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? 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?
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? 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?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section: Chapter Questions
Problem 24SQ
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Question
A student has a monthly budget of $120 to spend on either burrito, which cost $6 each, or sodas, which cost $4 each.
Draw the student's budget constraint. Put burritos on the x-axis and sodas on the y-axis.
- 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?
- 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?
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