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Martha has $150 to spend each week and cannot borrow money. She buys malted milk balls and the composite good. Suppose that malted milk balls
Martha has $150 to spend each week and cannot borrow money. She buys malted milk balls and the composite good. Suppose that malted milk balls cost $2.50 per bag and the composite good costs $1 per unit. a. Draw Martha's budget constraint. Instructions: Use the line tool (Budget Constraint) provided to plot the Budget Constraint (plot 2 points) curve. To earn full credit for this graph you must plot all required points for each curve. Your Graph Score: 100% SY 150 125 budget constr 100 75 50 25 0 10 30 40 50 60 70 Milk Balls b. What is the opportunity cost, in terms of bags of malted milk balls, of an additional unit of the composite good? Instructions: Round your answer to 1 decimal place. 2.0/5 @ bags of milk balls
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