Question

Homework (Ch 21) Suppose Juanita has a monthly budget of $80 to spend on milk and cereal. Milk is priced at $4 per gallon, and cereal is priced at $2 per box. If Juanita spends her entire $80 on milk, she can buy cereal 80 gallons of milk. If she spends her entire $80 on cereal, she can buy boxes of Use the blue line (circle symbol) to plot Juanita's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of milk and cereal that are affordable for Juanita. Finally, place the black point (plus symbol) on the point on Juanita's budget constraint that corresponds to a scenario in which Juanita spends $40 on each good. Note: Dashed drop lines will automatically extend to both axes 00 56 50 BC, ($80) 45 40 36 Affordable Region CEREAL (Boes) 30 + 25 $40 on Each 20 15 10 BC, ($100 5

Answer 1

pleax Rate My $4 Answer, I=880 1 Pm = $4 per gallon , Pc = $2 per box of Juanita Spends her Entise $80 m molt, the can be Pm=$80 = 20. gallons of milk of Juanita spends her entire $80 on Coreal, The Cantes $80 Im = 40 boxes o cereals $2 Pc when the spends $40 on Each good quanting g milk =10 cuantity of Cereal = 40 = 20. The Elbpe of the doodget Contraint represents the (D) The opportunity cost of an added and box o o temo of gallons of milk. Qc = 그 40 u a

Juanita faces a new tradeoff between milk and lered the anwer o falec. Since Pope I Contocent, the budget Elope - pm Pc. when either the porce of mik Here the Slope changers a Sereal changes.