Question
Mike likes to spend $48 weekly on movies and burgers. Movie tickets cost $6 each and burgers cost $3 each. (i) Is he able to
Mike likes to spend $48 weekly on movies and burgers. Movie tickets cost $6 each and burgers cost $3 each.
(i) Is he able to watch 4 movies and have 10 burgers in a week given his budget of $48?
(ii) What is Mike's opportunity cost of watching 4 movies?
(iii) Draw Mike's budget constraint line using the horizontal axis to represent quantity of movie tickets and the vertical axis to represent quantity of burgers. Be sure to compute and show values of the x and y-intercepts. What is the slope of the budget constraint line you have drawn?
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