Question

Sam is buying salad and pizza for a company lunch. Suppose that a bowl of salad costs $5.00, and a slice of pizza costs $3.00. 

Let E be the amount in dollars that Sam spends on salad and pizza. If Sam buys S bowls of salad and P slices of pizza, then the total amount of money he spends (E) can be represented by the equation _______ .

Now rearrange the equation you wrote above so that P is written in terms of E and S. The quantity of pizza he buys can be represented by the equation _______  

Suppose Sam has $30.00 to spend on salad and pizza; that is, E $30.00. 

Complete the following table with the values of S or P that make the equation true. 

Hint: To complete the first row, determine the number of pizza slices Sam can purchase with $30.00, when the number of salad bowis.se purchases is 0 

Budget	Salad	Pizza
(Dollars)	(Bow/s)	(Slices)
30.00	0
30.00	3
30.00		0

Use the black line (plus symbols) to plot the line illustrating the combinations of salad and pizza that Sam can purchase with a budget of $30.00. 

Now suppose Sam's income is cut in half : That is, he has 50% less money to spend than he did before. 

On the previous graph, use the blue line (circle symbols) to plot Sam's new budget constraint. 

Which of the following statements best summarizes the pattern of causality captured by the graph above? Check all that apply 

• The relationship between S and P is not a causal relationship. 

• A change in P causes a change in S 

• A change in S causes a change in P. 

• A change in E causes a shift of the budget constraint. 

Answer 1