Q1 - Amber has $150 to provide for one of two spending choices: (a) A new Economics textbook or (b) A ticket to a Sean Mendes concert...

(a)If Amber decides to go to the concert, what accounting cost and opportunity cost does she face? Please explain...

(b)What is Amber's opportunity cost of buying the textbook?

(c)Is there any way that she can avoid facing an opportunity cost? Explain...

Q2 -Melinda earns $400 a month from her part-time job. She buys only two goods: X and Y. Good X costs $20 each and good Y costs $40 each.

(a)Using a chart, illustrate Melinda's budget constraint.

(b)Give one example of an allocation that is unaffordable for Melinda. Explain why.

(c)Draw a graph of Melinda's budget constraint. Explain how it illustrates the concept of Scarcity.