1. An individual's budget Suppose Bob has a weekly budget of $48 to spend on juice and yogurt. Juice is priced at $4 per gallon, and yogurt is priced at $2 per container,
If Bob spends his entire $48 on juice, he can buy
yogurt.
12 gallons of juice. If he spends his entire $48 on yogurt, he can buy
24 containers of
Use the blue line (circle symbol) to plot Bob's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area
that represents combinations of juice and yogurt that are affordable for Bob. Finally, place the black point (plus symbol) on the point on Bob's budget
constraint that corresponds to a scenario in which Bob spends $24 on each good.
Note: Dashed drop lines will automatically extend to both axes.
36
33
30
BC, (548)
27
24
21
Affordable Region
YOGURT (Containers)
16
15
$24 on Each
12
9
BC,(560)
3
6
12
15 18 21
24 27 30 39 36