Hira likes to shop at Beach Books, where a book is priced at $10. She also likes to shop at Busy Beans, where a latte is priced at $5. Hira has an income of $60.
a. Graph Hira's budget constraint, placing books on the x-axis and lattes on the y-axis.
b. Suppose that Hira's grandmother gives her a cash gift of $20. Graph Hira's budget constraint.
c. Now, suppose that in lieu of the cash gift of $20, Hira's grandmother gives her a $20 gift card to Busy Beans. Graph Hira's budget constraint.

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The Answer of Hira likes to shop at Beach Books, where a book is priced at $10. She also likes to shop at Busy Beans, where a latte is priced at $5. Hira has an income of $60.
a. Graph Hira's budget constraint, placing books on the x-axis and lattes on the y-axis.
b. Suppose that Hira's grandmother gives her a cash gift of $20. Graph Hira's budget constraint.
c. Now, suppose that in lieu of the cash gift of $20, Hira's grandmother gives her a $20 gift card to Busy Beans. Graph Hira's budget constraint.

Hira Likes to Shop at Beach Books, Where a Book