Microeconomics: Budjet Constraint

posted by .

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 bu ffet at Fuji Chef instead. The buff et 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 -

    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 -

    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.

  • Microeconomics: Budjet Constraint -

    To be more clear, (20,0) to (7,0)

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. stats

    Eating raw fish (and enjoying it) is an acquired taste for many people who have never tried sushi. Ten people who had never before eaten sushi were asked to rate how much they liked it on a 100-point scale (100=fantastic, 0=yuck) on …
  2. English

    Thank you very much for your last corrections. Here are some more sentences about Christmas holidays I would like you to check. 1) How long did your Chrismas holidays last?
  3. macroeconomics

    I have tried this 3 ways and this is my last chance to get ir rigth please help. Dave is buying pizza and soda. Suppose that a slice of pizza and a can of soda each cost $4 Let E be the amount in dollars that Dave spends on pizza and …
  4. math

    Giselle spent a total of $43 when she went shopping. She spent $14 for socks, $18.75 for a wallet, and bought lunch. When she got home, she had $4 left. How much did she spend for lunch?
  5. math

    A group of 8 office workers order 12 packs of sushi form the local Japanese restaurant for lunch. If the packs of sushi are shared equally, what fraction of a pack will each office worker get for lunch?
  6. Macroeconomics

    Dave is buying pizza and soda. Suppose that a slice of pizza and a can of soda each cost $4 Let E be the amount in dollars that Dave spends on pizza and soda. If Dave buys P slices and S cans of soda, which one of the following equations …
  7. math

    Gustavo is making sushi rolls. He needs 1/3 cup of rice to make each roll. If he has 4 cups of rice, how many sushi rolls can he make?
  8. Reverse math confused

    Romita gets the sushi lunch special at Yoshi's. By using a coupon she receives $2.00 off the regular price p. Her total cost including 20 percent for tax and tip is $9.00. What is p the regular price of the lunch special?
  9. 8th grade math

    Romita gets the sushi lunch special at Yoshi's. By using a coupon she receives $2.00 off the regular price p. Her total cost including 20 percent for tax and tip is $9.00. What is p the regular price of the lunch special?
  10. Math

    Rachel spent half of her money on lunch and one quarter on a book she had 1.50 dollars left how much did she spend on lunch

More Similar Questions