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suppose Juanita has a monthly budget of $80 to spend on juice and cereal. Juice is priced at $4 per gallon, and cereal is priced
suppose Juanita has a monthly budget of $80 to spend on juice and cereal. Juice is priced at $4 per gallon, and cereal is priced at $2 per box. If Juanita spends her entire $80 on juice, she can buy gallons of juice. If she spends her entire $80 on cereal, she can buy boxes of Cereal Use the blue line (circle symbol) to plot Juanita's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of juice and cereal that are affordable for Juanita Finally, place the black point (plus symbol) on the point on Juanita's budget constraint that corresponds to a scenario in which Juanita spends $40 on each good. Note: Dashed drop lines will automatically extend to both axes. 60 T BC1(S80) 45 40 Affordable Region 35 30 25 $40 on Each 15 10 BC2($100) 0 5 10 15 20 25 30 35 40 45 50 55 60 JUICE Gallons
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