2 Calculate the equation for Saras budget line (with bags of popcorn on the left side). Draw...

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2 Calculate the equation for Sara’s budget line (with bags of popcorn on the left side). Draw a graph of Sara’s budget line with the quantity of smoothies on the x -axis.

What is the slope of Sara’s budget line? What determines its value? Sara has an income of £12 a week. The price of popcorn is £3 a bag, and the price of a smoothie is £3.

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Economics

ISBN: 9781118150122

10th European Edition

Authors: Michael Parkin, Dr Melanie Powell, Prof Kent Matthews

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