1) Jack has $60 to spend on lunch each week. He eats either at the Taco Hut, whi

Question

1) Jack has $60 to spend on lunch each week. He eats either at the Taco Hut, which costs $10, or the Pizza Shack, which costs $12. Which of the following combinations is on Jack's budget line? O a) 4 lunches at Taco Hut and 2 lunches at Pizza Shack. O b) 0 lunches at Taco Hut and 6 lunches at Pizza Shack. O c) 6 lunches at Taco Hut and O lunches at Pizza Shack. O d) 3 lunches at Taco Hut and 3 lunches at Pizza Shack. Submit You currently have 0 submissions for this question. Only 10 submission are allowed. You can make 10 more submissions for this question Survey Question) 2) Please provide your rationale for your answer to the previous question. Submit You currently have O submissions for this question. Only 10 submission are allowed. You can make 10 more submissions for this question.

Explanation / Answer

1& 2. The total budget of Jack is 60$. So his total cost hould be less than equal to 60$. Hence examining each cases

3& 4 When price of one good reduces, the quantity which could be purchased budget being unchanged is higher, hence the budget line is pivoted outword for the comodity. Hence option (d).

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.