Chapter Checkpoint
Study Plan Problems and Applications
Amy has $12 a week to spend on coffee and soda. The price of coffee is $2 a cup, and soda is $1 a can. Use this information to work Problems 1 and 2.
Draw a graph of Amy’s budget line. Can Amy buy 7 cans of soda and 2 cups of coffee a week? Can she buy 7 cups of coffee and 2 cans of soda a week? What is the relative price of a cup of coffee?
Suppose that the price of soda remains at $1 a can but the price of coffee rises to $3 a cup. Draw Amy’s new budget line. If she buys 6 cans of soda, what is ...
Get Foundations of Economics, 8th Edition now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
