Posted by Johnson on Thursday, August 6, 2009 at 9:44pm.
You have decided to eat sushi for lunch and have a grand total of $20 to spend.
Whatever money you have left over from buying sushi rolls will be spent on cans of soda to get you through the rest of the day. Your problem is to choose the best combination of sushi rolls and cans of soda. A sushi roll (R) is $6 and cans of soda (C) are $1.
Now suppose that you decided to go to the buffet at Fuji Chef instead. The buffet costs $13. Sketch your new budget constraint. (Hint: your possible consumption bundles still consist of cans of soda and rolls of sushi.)

Microeconomics: Budjet Constraint  economyst, Friday, August 7, 2009 at 9:47am
Take a shot, what do you think.
First two assumptions. I presume you cannot by fractional sushi rolls or cans of soda. So, hint: your first budget constraint will look like steps.
Second, I presume at the buffet, you can eat all the sushi rolls you want, and soda is not included. Here, hint: the budget constraint is a vertical line (or horizontal, depending on which axis has soda and which as sushi)

Microeconomics: Budjet Constraint  Johnson, Friday, August 7, 2009 at 8:43pm
Sorry I should have said that fractional sushi rolls and cans of soda are possible. What I was thinking was, with soda on the vertical axis and sushi on the horizontal axis, we have a horizontal
line at $7 on the vertical axis. So basically a straight line down at (20,0) till 7, then a horizontal line.
Answer This Question
Related Questions
 math  A group of 8 office workers order 12 packs of sushi form the local ...
 math  Gustavo is making sushi rolls. He needs 1/3 cup of rice to make each roll...
 stats  Eating raw fish (and enjoying it) is an acquired taste for many people ...
 Macroeconomics  Dave is buying pizza and soda. Suppose that a slice of pizza ...
 macroeconomics  I have tried this 3 ways and this is my last chance to get ir ...
 English  Thank you very much for your last corrections. Here are some more ...
 math  Giselle spent a total of $43 when she went shopping. She spent $14 for ...
 8th grade math  Romita gets the sushi lunch special at Yoshi's. By using a ...
 Reverse math confused  Romita gets the sushi lunch special at Yoshi's. By using...
 English  1. He spent much money on clothes. 2. He spent too much money in ...
More Related Questions