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Hi, I need help with understanding which formula's to use with this type of question and how to solve it in steps. Radu likes to

Hi, I need help with understanding which formula's to use with this type of question and how to solve it in steps.

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Radu likes to eat pizza while drinking a can of beer. He has a weekly gourmet budget of $48. In the diagram below, pizza is on the horizontal axis and beer is on the vertical axis. The intercepts are 8 cans on the beer axis and 4 slices on the pizza axis. Radu has also been observed to buy 2 slices of pizza and 4 cans of beer. Budget Line 10- 8 beer (can) 6- 2. 3 5 6 7 8 9 10 11 Reset pizza (slice) a) Draw the budget line in the graph above using the initial drop-down. b) What are the prices of beer and pizza? (Make sure your answers are accurate to two decimal places) Price of a can of beer = $0 Price of a slice of pizza = $0 down. c) Suppose that the price of a can of beer increases to $12, but that Radu's income simultaneously increases by $24. Draw the new budget constraint in the graph above using the second drop

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