3. Calculate the opportunity cost - LO3

a) You own a building that has two possible uses: a grocery store, and a clothing

store. The value of the building in each use is $ $7,000; and $10,000,

respectively. You decide to open a grocery store. What is the opportunity cost

of using this building for a grocery store?

b) Stephanie has $200 left over this week, and she wants to contribute to a

charitable cause. She can either feed 20 homeless persons two meals in a day

or she can provide shelter for 10 homeless persons one night. What is the

opportunity cost of Stephanie using all her money to shelter homeless people?

c) Mexico can cultivate either 120 bushels of Oranges per acre or 200 bushels of

Bananas per acre. What is the opportunity cost of cultivating 1 bushel of

Oranges per acre?

4.Show your work

1) Draw the graph and label it properly and find the slope for the following set of

data between points A and B, E and F

Point X Y

A 100 50

B 200 75

C 300 100

D 400 100

E 500 75

F 600 50

2) Draw a graph and label it properly using the information given in the table below

and find the value of Y-Intercept and the slope.

Aggregate Income ($) Aggregate Consumption ($)

X Y

0 80

50 125

100 170

150 215

200 260