Question

Larry is buying pizza and salad for a company lunch. Suppose that a sice of pizz a costs $2.00, and a bowl of salad costs $4.00 Let E be the amount in dollars that Larry spends on pizza and money he spends (E) can be represented by the equation salad. If Larry buys p sices of pizza and s bowls of salad, then the total amount of Now rearrange the equation you wrote above so that s is written in term s of E and P. The quantity of salad he buys can be represented by the equation Suppose Larry has $40.00 to spend on pizza and salad, that is, E-$40.00 Complete the following table with the values of p or s that make the equation true Hint: To complete the first row, determine the number of salad bowls Larry can purchase with $40.00, when the number of pizza sices he purchases is o Budget Pizza Salad (Dollars) (Slices) (Bowls) 40.00 40.00 10 40.00 use the back line (plus symbols) to plot the line stratrng the combinations of peza and salad that Lamy can purchase with a buget of S40.00
Initial Budget New Budget 10 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 PIZZA (Slices) Now suppose Larrys 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 Larrys 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 P and s is not a causal relationship. A change in E causes a shift of the budget constraint. A change in P causes a change in s. A change in s causes a change in P.
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Answer #1

1) E = Expenditure on pizza + Expenditure on salad = 2P + 4S

2) E = 2P + 4S

4S = E - 2P

S = (E - 2P)/4

S = 0.25E - 0.5P

Budget Pizza Salad
40 0 S = 0.25(40) - 0.5(0) = 10
40 10 S = 0.25(40) - 0.5(10) = 10 - 5 = 5
40 P = E/2 = 40/2 = 20 0

When income decreases by half then new BL; 2P + 4S = 20

At P = 0, S = 20/4 = 5

At S = 0, P = 20/2 = 10

Initial Budget 24 New Budget 18 16 14 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 PIZZA (Slices)

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

A change in P causes a change in S.

A change in S causes a change in P.

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