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Louise loves to travel.She earns $50per week and consumes only two goods:gasoline and restaurant meals. Each gallon of gasoline costs $5 and each restaurant meal
Louise loves to travel.She earns $50per week and consumes only two goods:gasoline and restaurant meals. Each gallon of gasoline costs $5 and each restaurant meal costs $10.
Questions:
(a) Determine Louise's budget constraint using either a chart or diagram(5 marks)
(b) Consider an allocation of 3 gallons of gasoline and 3 restaurant meals. What is happening at this allocation? Explain (2 marks)
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