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1. Your local coffee shop charges $0.50 per ounce of coffee, and you devote at most...

1. Your local coffee shop charges $0.50 per ounce of coffee, and you devote at most $15 per week for coffee.

(a) (10 points) Graph your budget constraint.

(b) (5 points) What is the opportunity cost of coffee?

(c) (5 points) Your coffee shop has a limited edition coffee. To keep people from buying too much, the price increases to $2.00 per ounce after the first 16 ounces. Graph the new budget constraint.

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