Katy has made her best affordable choice of noodles and iced tea. She spends all of her

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Katy has made her best affordable choice of noodles and iced tea. She spends all of her income on 15 packets of instant noodles at $3 each and 30 cups of iced tea at $2 each. Now the price of noodles rises to $3.50 per packet and the price of iced tea falls to $1.75 a cup.

a. Will Katy now be able to buy 15 packets of instant noodles and 30 cups of iced tea?

b. If Katy changes the quantities she buys, will she buy more or fewer packets of instant noodles? Explain your answer.

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Economics

ISBN: 9781292433639

14th Global Edition

Authors: Michael Parkin

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