Question
Bob likes miniburger and sprite. Miniburgers cost $2 each and sprite cost $1 per bottle. There is a special promotion for sprite that will last
Bob likes miniburger and sprite. Miniburgers cost $2 each and sprite cost $1 per bottle. There is a special promotion for sprite that will last for one month. If Bob sends in the bottle tops from the sprite he drinks during the next month, he will get a refund of $0.40 for every bottle cap beyond the first 12 that he returns. For example, if he returns 25 bottle caps he will get back $5.20 = $0.40 (25-12). Bob has $80 to spend on miniburgers and sprite during the next month. Draw his budget line with sprite on the horizontal axis and miniburgers on the vertical axis. Find the points where the budget line hits the axes and the point where it has a kink. At each of these three points write down the quantities of each good consumed.
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