Suppose you won $15 on a lotto ticket at the local 7-Eleven and decided to spend all the winnings on candy bars and bags of peanuts. The price of candy bars is $.75 and the price of peanuts is $1.50. LO4

a. Construct a table swhiong the alternateiv combinations of the two products that are available.

b. Plot the data ino uyr atble as a budget line in apa hg. r What is the slope of the budget line? What is the opportunitycosto fonemor ecandybar ? Ofone more bag of peanuts? Do these opportunity costs rise, fall, or remain constant as each additional unit of the product is purchased?

c. How, in genaelr, would you decide whichf othe available combinations of candy bars and bags of peanuts to buy?

d. Suppose that oyu had own $30 ono uyr ticket, not

$15. Show the $30 budget line in your diagram. Why would this budget line be preferable to the old one?