Question

Caroline is a 15 year old girl who goes to a baseball game with her friend's family He patent bought her a ticket and gave her $20 to spend on food. Caroline has two favorite iteme iee cr and cheeseburgers. A serving of ice cream has a price of $5 and a cheeseburger has a price of s Draw a graph showing Caroline's budget constraint at the baseball game. What is the og cost of a cheeseburger?

Answer 1

Ans:

The opportunity cost of cheeseburger is 2

Explanation:

The opportunity cost of 1 cheeseburger = 4 / 2 = 2 ice cream

Caroline's budget constraint is shown in the following diagram.

The opportunity cost of cheeseburger is 2 Explanation: The opportunity cost of 1 cheeseburger = 4/2 = 2 ice cream Caroline's budget constraint is shown in the following diagram Caroline�s total to be spent = $ 20 Ice cream�s price = $ 5 cheese burger�s price = $ 10 M = (P_I times Q_I) + (P_C times Q_C) where, M = total money income P_I = price of ice cream Q_I = Quantity of ice cream bought P_C = price of cheeseburger Q_C = Quantity of cheese burger bought.