PROBLEMS
- Use this information to answer the following 4 questions: Marie has a weekly budget of $24, which she likes to spend on magazines and pies.
- If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week?
- If the price of a pie is $12, what is the maximum number of pies she could buy in a week?
- Draw Marie’s budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint?
- What is Marie’s opportunity cost of purchasing a pie?