Question

Missy is in school learning to be a welder she spends long hours
studying and drinking coffee and long hours practicing in the hot
dirty shop and therefore takes frequent shower is Missy has $70 per
month to spend on this soap and coffee she needs to function
properly and the accompanying graphic move the BC line to correctly
detect Missy budget constraint assuming the soap cost $3.50 per
bottle and the coffee cost $14 per pound if a point will not go
where you want it to put it by placing the other end. There they
classify the letter points according to whether they describe
baskets of goods that are on affordable affordable and exhaust miss
his budget or affordable with money left over

Answer #1

**Solution:-**

Missy has $70.00 a month to spend on the soap and coffee, i.e., budget per month is: $70

The soap cost is: $3.50, and

The coffee cost is: $14.00

**The equation to the budget constraint:**

Budget (M) = (Px*Qx) +(Py*Qy)

Now Qx = M/Px and Qy = M/Py

Thus,

If Missy spends his entire $70 on soap, he can buy 20 soaps i.e., 70/3.5 = 20

If Missy spends his entire $70 on coffee, he can buy 5 coffee’s i.e., 70/14 = 5.

The Missy's budget constraint could be drawn as below:

That means, 1 pound of coffee = 4 bottles of soap.

So, Every time Missy buys a pound of coffee, she is giving up the opportunity to buy:

**4 bottles of soap.**

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 4 minutes ago

asked 12 minutes ago

asked 12 minutes ago

asked 20 minutes ago

asked 29 minutes ago

asked 37 minutes ago

asked 39 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago