Question
1. Nathan has a budget of $54. He can spend it on either burritos ($6 each) or pajama onesies ($18 each). A. Graph Nathan's budget
1. Nathan has a budget of $54. He can spend it on either burritos ($6 each) or pajama onesies ($18 each). A. Graph Nathan's budget constraint, assuming burritos are on the horizontal axis and pajamas are on the vertical axis. Be sure to label any relevant points. Assume the budget constraint is a straight line between the two axis intercepts. B. Pajama onesies go on sale and their price drops to $9. Draw Nathan's new budget constraint. C. What is Nathan's opportunity cost of onesies in both cases? In other words, how many burritos does Nathan have to give up to buy an additional onesies in each case?
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