Question
Suppose there are two options for dining out in Pleasanton; Gio's Pizza and Taco Jalisco. If you have a dining out budget of $180/month and
Suppose there are two options for dining out in Pleasanton; Gio's Pizza and Taco Jalisco. If you have a dining out budget of $180/month and a dinner at Gio's Pizza costs $15 and $20 at Taco Jalisco, depict your dining budget constraint.
What is the opportunity cost of Gio's Pizza in terms of Taco Jalisco?
What is the opportunity cost of Taco Jalisco in terms of Gio's Pizza?
In your graph, depict a change in the budget constraint that occurs if the cost of Gio's Pizza increases to $18 per dinner.
What are the new opportunity costs?
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Inflation, Unemployment And Capital Malformations
Authors: Bernard Schmitt, Xavier Bradley, Alvaro Cencini
1st Edition
0429767064, 9780429767067
