Question

2. Perry lives on avocados and beans. The price of avocados is $10, the price of beans is $5, and his income is $40. a. Draw Perry's budget line on a graph with avocados on the horizontal axis and beans on the vertical axis. Label the point where the budget line hits the horizontal axis A and the point where the bud get line hits the vertical axis B. Next to these labels, write down the number of avocados purchased at A and the number of beans purchased at B. b. Draw another budget line showing what Perry's budget would be if his income doubled, the price of avocado and beans stay the same. Label the point where this line hits the vertical axis C and the point where it hits the horizontal axis D. Next to these labels write the number of avocados at C and the number of beans at D. c. Draw one more budget line showing what Perry's budget would be is the price of avocados doubled, her income and the price of beans stayed the same (S40). Label the point where this line hits the vertical axis E and the point where it hits the horizontal axis F. Next to these labels write the number of avocados at E and the number of beans at F.

Answer 1

Please find the caluculation with formulas and the graph chart attached below.

PARTA $ per unit Max Qty Avacados 10 4 =40 / 10 Beans 5 8 = 40/5 in PART B $ per unit Max Qty Avacados 10 8 = 80 / 10 Beans 5 16 = 80 / 5 PARTC $ per unit Max Qty 20 2 = 40 / 20 5 8 =40 / 5 Avacados Beans

Chart

18 17 16 POINT C 15 BEANS=16 AVOCADOS=0 14 13 B 19 12 A N 11 10 9 8 POINT B POINT F BEANS=8 BEANS=8 7 AVOCADOS=0 AVOCADOS=0 5 3 2 1. BEANS=0 BEANS=0 AVOGADOS=2 POINTEF BEANS=0 VOCADOS=8 AVOCADOS=4 POINT A PEINT D 1 2 3 4 5 7 8 9 10 AVOCADOS