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Esther Has an Income of $80, and She Consumes Pizza

Question 81

Essay

Esther has an income of $80, and she consumes pizza (P) and soda (S). The price of pizza is $10, and the price of soda is $4.
a. Graph Esther's budget constraint.
b. Graph Esther's budget constraint assuming that there is a buy-one-get-one-free pizza special.
c. Graph Esther's budget constraint assuming that there is a buy-two-get-one-free pizza special.

Correct Answer:

verifed

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blured image The horizontal intercept is $80/$4 = 20...

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