Assume that Paula can buy gum or candy. A pack of gum costs $.30 and a candy bar costs $.50. Paula has $3.00 a day to spend on gum and candy bars. Draw Paula's budget constraint. Shade in Paula's choice set. On the graph show how Paula's budget constraint will be affected if the price of gum increases to $.50.

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The Answer of Assume that Paula can buy gum or candy. A pack of gum costs $.30 and a candy bar costs $.50. Paula has $3.00 a day to spend on gum and candy bars. Draw Paula's budget constraint. Shade in Paula's choice set. On the graph show how Paula's budget constraint will be affected if the price of gum increases to $.50.

Assume That Paula Can Buy Gum or Candy