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Use the following data to work Question #l's Problems a and b. Sara's income is $500 a week. The price ofpopcorn is $4.75 a bag,
Use the following data to work Question #l's Problems a and b. Sara's income is $500 a week. The price ofpopcorn is $4.75 a bag, and the cost ofa smoothie is $7. a. Calculate Sara's real income in terms of smoothies. Calculate her real income in terms of popcorn. What is the relative price of smoothies in terms of popcorn? What is the opportunity cost of a smoothie? b. Calculate the equation for Sara's budget line (with bags of popcorn on the left side). Draw a graph of Sara's budget line with the number of smoothies on the xaxis. What is the slope of Sara's budget line? What determines its value
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