# PS1S - ECON 110 Problem Set 1 Solutions Chapter 1 Problem 4...

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ECON 110 Problem Set 1 Solutions Chapter 1: Problem 4 a. Yes, you faced a tradeoff. The tradeoff was between a higher test score and an evening you’re your friends at the movies. b. The opportunity cost of going to the movies is the fall in your grade. That is the 20 points forgone from choosing to see the movie rather than study. Chapter 1 Appendix: Problem 6 a. To make a graph that shows the relationship between x and y , plot x on the x -axis and y on the y -axis. The relationship is negative because x and y move in opposite directions: As x increases, y decreases. b. The slope decreases as x increases. Slope is equal to the change in y divided by the change in x as we move along the curve. When x increases from 1 to 2 (a change of 1), y decreases from 24 to 22 (a change of 2), so the slope is 2. But when x increases from 4 to 5 (a change of 1), y decreases from 8 to 0 (a change of 8), so the slope is 8. c.

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PS1S - ECON 110 Problem Set 1 Solutions Chapter 1 Problem 4...

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