On your graph for problem 5, draw the new budget constraint that results if the price of soccer balls increases to $25 and the price of socks remains $5 per pair. Shade the area on your graph that represents all the combinations of the two goods that you could afford after the price change.

Data from problem 5

Suppose this weekend you’re going to the sporting goods store to spend a $75 gift certificate on some combination of $15 soccer balls and $5 pairs of socks. Draw your budget constraint, with the quantity of pairs of socks shown on the horizontal axis and the quantity of soccer balls shown on the vertical axis. Draw dotted lines to both axes from each point to indicate the quantity of each good represented by each point on your budget constraint.