Susan has $10 to spend on soda and candy bars.Soda costs $1 per bottle and candy bars cost $.50 each.Using the grid below: (Appendix) (a)Draw Susan's budget constraint.
(b)Draw a new budget constraint if the price of soda stays at $1 per bottle but the price of candy bars rises to $1 each.
(c)Draw a new budget constraint with the prices at their original levels (soda costs $1 per bottle and candy bars cost $.50 each)but now suppose that on her way to the store to make her purchase Susan loses $5 (she now has only $5 to spend).

Question

Susan has $10 to spend on soda and candy bars.Soda costs $1 per bottle and candy bars cost $.50 each.Using the grid below: (Appendix)  (a)Draw Susan's budget constraint.
(b)Draw a new budget constraint if the price of soda stays at $1 per bottle but the price of candy bars rises to $1 each.
(c)Draw a new budget constraint with the prices at their original levels (soda costs $1 per bottle and candy bars cost $.50 each)but now suppose that on her way to the store to make her purchase Susan loses $5 (she now has only $5 to spend).

Quizplus · Accepted Answer

The Answer of Susan has $10 to spend on soda and candy bars.Soda costs $1 per bottle and candy bars cost $.50 each.Using the grid below: (Appendix)  (a)Draw Susan's budget constraint.
(b)Draw a new budget constraint if the price of soda stays at $1 per bottle but the price of candy bars rises to $1 each.
(c)Draw a new budget constraint with the prices at their original levels (soda costs $1 per bottle and candy bars cost $.50 each)but now suppose that on her way to the store to make her purchase Susan loses $5 (she now has only $5 to spend).

Susan Has $10 to Spend on Soda and Candy Bars