Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

She will choose to work at the cafe for the full 6 hours because the wage rate at the cafe is $12 per hour, which

image text in transcribed
image text in transcribed
She will choose to work at the cafe for the full 6 hours because the wage rate at the cafe is $12 per hour, which is greater than the wage rate at the bookstore of $9. This leaves her with 9 hours of worlr time remaining. Next she will choose to work at the garage for the full 5 hours because the wage rate here is $10, which again is greater than the bookstore wage rate $9. After this decision she only has 4 hours of work time remaining. She will choose to work these last 4 hours at the bookstore because the bookstore wage rate of$9 exceeds the daycare center wage rate of $3.50. 3. Suppose you won $15 on a lotto ticket at the local TEleven and decided to spend all the winnings on candy bars and bags of peanuts. The price of candy bars is $35 and the price of peanuts is $1.51]. L04 a. Construct a table showing the alternative combinations of the two products that are available. b. Plot the data in your table as a budget line in a graph. What is the slope of the budget line? What is the opportunity cost of one more candy bar'? [if one more bag of peanuts? Do these opportunity costs rise, fall= or remain constant as each additional unit of the product is purchased? c. Does the budget line tell you which of the available combinations of candy bars and bags of peanuts to buy? d. Suppose that you had won 530 on your ticket not $15. Show the $30 budget line in your diagram. Has the number of available combinations increased or decreased? Answers: Part :1: Consumption alternatives _\"El mum 8 6 4 2 [II Bags of peanuts 10 1-d

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

E Marketing

Authors: Raymond Frost

7th Edition INTERNATIONAL EDITION

0132953443, 978-0132953443

More Books

Students also viewed these Economics questions