Question

A student has a monthly budget of S120 to spend on either burritos, which cost $6 each, or sodas, which cost $4 each. 1. What is the largest number of burritos that the student could afford to purchase in one month? 2. What is the largest number of sodas the student could afford to purchase in one month? 3. Draw the student's budget constraint. Put burritos on the x axis and sodas on the y-axis. 20 4. Which combinations of burritos and sodas are unaffordable- those to the left of the line in the graph or those above the line in the graph? Why? 5. Which combinations would leave some budget unspent those to the left of the line in the above graph or those to the right of the line in the above graph? 6. What is the equation for the student's budget constraint? In your equation, use Q1 as the variable to represent the quantity of burritos and Q2 to represent the quantity of sodas. 7. What is the opportunity cost of a burrito? 8. What is the opportunity cost of a soda? 9. The local farmers market offers 1 bag of cilantro for S6 or 2 bags for S10. What's the marginal cost of the second bag? Use the following information to answer questions 10 through 12: Suppose the relationship between your study time and your grade on a History midterm is given by the following table: If you study for Yout 5 hours

Answer 1

Budget (M) = $120; hice no Burritos ( lp ) = $ 6 Price of soda (Ps) = $4 largest number of burritos that the student can afford = M = 120 = 20 largest number of sodas that the student can afford = M = 120 = 30 2 1. 3. Sodas 4. Those - cost of 1. exceeds 5. Those bundles would (note: doo Burritos above the une are unaffordable because any bundle lying above the line the budget . Thus, they are unaffordable. to the left of line because cost of such would be uss than budget and thus leave some budget unspent. Post a subparts at a time.)