Question

#6.) I have cappuccino and scones every morning at the Peet's in Westwood. a) In January, I decided I could afford to spend $20/week on cappucino and scones; cappucino was $2 and scones were $2. b) In February, I decided I could afford to spend $30/week; prices remained the same. c) In March, I discovered that the bakery across the street from Starbuck's sells equally good scones for $1.00, so I started buying cappucino at Peet’s and scones at the bakery. [Everything else remained the same as in February.] d) In April, Peet's got a little huffy about bringing in scones from across the street (and sitting in Peet's to drink and eat and read the paper). After much argument, we came to a compromise: I can bring in 7 scones per week from the bakery — but after that I have to buy all my scones at Peet’s. [Everything else remained the same as in February.] ON ONE SKETCH, show my budget set in January, February, March, April. It may help to use different colors. Label clearly!

Answer 1

a classmate Income = $ 20 / week Date- Page (Px) Price of ceppuuno = 82 ; Price of Scones (2212 let & be the Quantity of cepucino y be the Quantity of scones. Px x + Pyy= 20 (Budget constraint) 2x + 2y = 20 = x + 1 = 10 xoto for January mume $301 week for february • XP,+ Y P, = 30 (Badget Constraint) 2x + 2y = 30 x+y=1s x o 115 for february in ume = $ 3o lweek, Ry Citnice of scones) 2:12 XP x + y Py' = 30 2x + y = 30 (Budget constraint) March Yl 2010 * Abil; Maximum 7 sones can be bought from the bakery: So it at /<7] Ce seed with XP + Y Py' = 30 o camScanner 2x + y =30 (A)

Y=0, x=15 Y=7, x= 11.5 classmate Date Page H 23 how Jecoy & of [y >77 *l+ y 2 23 X P+(y-7)(y = 23_' (Income is only - 2x + (y-7) 2 = 23 & 7 have dready been spent on when IX 2o. 7_ Scories 2 for march April. The budget constraint is "combination of '(m) (B 1, 17-18. C | Slones S - AB: January, Budget line C D: Februari Budest line £JD: March Budget line KID: Apil Budget line phorch, febryting C arry 3 6 9 12 is 18 21 24 27 30 Calcuno CS Schned with scanner