a) A high-school student has a monthly budget of $80 to spend on music and burritos. Burritos cost $8 each, while songs are free after paying the Spotify monthly fee of $9.99.
1. In a diagram, measuring songs along the horizontal axis, draw the high-school student's budget constraint.
b) A family has an yearly income of $50,000 to spend on the kids' education or on all other goods.
1. In a diagram measuring dollars spent on education along the horizontal axis and dollars spent on all other goods along the vertical axis, draw the family's budget constraint.
2. In your diagram, draw the family's budget constraint if the family must pay a 10% income tax but receives a $5,000 school voucher.