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please answer (d), (e), (f) Liz has a monthly income of $200. She only buys two things: rice and beans. Suppose rice cost $4 per
please answer (d), (e), (f)
Liz has a monthly income of $200. She only buys two things: rice and beans. Suppose rice cost $4 per pound and beans $2 per pound. (a) What is Liz's opportunity cost for one more pound of rice? (b) What is Liz's opportunity cost for one more pound of beans? (c) Write the expression and graphically illustrate Liz's budget constraint. (d) Draw Liz's original budget line and a new budget line with an income of $300. (e) Draw Liz's original budget line and a new budget line that represents the price of a pound of beans increasing to $6. (f) There is a special at the Winn Dixie. The price of beans is $2/pound and if one buys 20 pounds, they get 10 pounds for free. (This only applies to THE FIRST 20 pounds.) Graph this new budget constraint (Liz has income of $200) Step by Step Solution
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