Question
2. Alfred likes scones and tea. He has 10 to spend on scones and tea; scones cost 2 each, and cups of tea cost 1
2. Alfred likes scones and tea. He has 10 to spend on scones and tea; scones cost 2 each, and cups of tea cost 1 each. sketch his budget line to scale with scones on the horizontal axis and cups of tea on the vertical axis.
3. Alfred has a calorie constraint: he can only consume 800 calories, and each scone has 200 calories, while tea has no calories. In the same figure as number 2, sketch Alfred's calorie constraint and indicate his budget set - the set of feasible combinations of scones and tea given his two constraints. Label all the kinks of Alfred's budget set with their coordinates. Label the values of the axis intercepts.
4. The tea shop where Alfred buys scones and tea started putting sugar in the tea, so that each cup of tea now has 50 calories. Write down an equation that represents Alfred's calorie constraint.
5. In a different figure (different space ) Sketch Alfred's budget line (he still has just 10 and prices did not change), his calorie constraint (he still only consumes 800 calories), and indicate his budget set. Find the coordinates of the point where the budget line and the calorie constraint intersect. Label the values of the axis intercepts and label all the kinks of his budget set with their coordinates.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started