Budget Constraint
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Last updated over 2 years ago
5 questions
1
What would the $10 be? $2?
What would the $10 be? $2?
1
You still have $50.
Create a schedule (another word to say table) of how much you could buy of each product. (Hint: label the columns "quantity of $10 item" and "quantity of $2 item.")
You still have $50.
Create a schedule (another word to say table) of how much you could buy of each product. (Hint: label the columns "quantity of $10 item" and "quantity of $2 item.")
1
Create a line that represents the above relationship where the quantity of item 1 and quantity of item 2 are the axes units. (Hint: how much of just one item could you buy? How much of just the other could you buy? Hint 2: Could you plot these points on the axes intercepts?)
Create a line that represents the above relationship where the quantity of item 1 and quantity of item 2 are the axes units. (Hint: how much of just one item could you buy? How much of just the other could you buy? Hint 2: Could you plot these points on the axes intercepts?)
1
In this scenario, what’s the opportunity cost of choosing to buy just one of the $10 items?
In this scenario, what’s the opportunity cost of choosing to buy just one of the $10 items?
1
Let's critique this idea of budget constraints. What's one big assumption of this idea of budget constraints?
Let's critique this idea of budget constraints. What's one big assumption of this idea of budget constraints?