Sara has $12 to spend on popcorn and nuts. Popcorn is $3 a bag, and nuts is $3 a bag. FigureA13.1 illustrates Sara’s preferences. Use the figure to work Problems.Suppose that the price of nuts falls to $1.50 a bag and the price of popcorn and Sara’s budget remain unchanged. What quantities of popcorn and nuts does Sara buy now? What are two points on Sara’s demand curve for nuts?

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FIGURE A13.1 Appendix Checkpoint Study Plan Problems I to 3 Popcorn (bags) 8 7 SO 5 4 3 2 01 2 3 4 5 6 14 /₂ lo 7 8 Nuts (bags)