Any good Southern breakfast includes grits (which my wife loves) and bacon (which I love). Suppose we allocate $60 per week to consumption of grits and bacon, and we know that grits cost $2 per box and bacon costs $3 per package.

1. llustrate my family's weekly budget constraint and choice set. Draw the graph.
2. Identify the opportunity cost of bacon and grits and relate these to concepts on your graph. Show the slope.
3. How would your graph change if a sudden appearance of a rare hog disease caused the price of bacon to rise to $6 per package, and how does this change the opportunity cost of bacon and grits? Illustrate graphically, shifts/movement of the budget line.