Amanda earns a weekly income of $250. She spends her income on two goods: music downloads and SHU

1.     Amanda earns a weekly income of $250. She spends her income on two goods: music downloads and SHU sporting events. Using the following prices, answer the prompts below.

Price of Music Download = $15.00/album

Price of Sporting Events = $25.00/game

a.     Plot Amanda’s Budget Constraint

b.     Calculate the slope of the budget line.

How will we know what combination of downloads/sporting events that Amanda will select? What additional information do we need? Explain

The post Amanda earns a weekly income of $250. She spends her income on two goods: music downloads and SHU appeared first on The Writer.

Reference no: EM132069492

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