Mikaela drinks 10 sodas and 4 smoothies. Yesterday smoothies were $5 each and sodas were $2 each. Today things are different: The government has implemented a tax on sodas and their price has doubled to $4. The government has also revised the income tax so that Mikaela's income has increased. She can now afford to buy her usual 10 sodas and 4 smoothies per week.
Part A: What is Mikaela's income today?
Part B: Suppose smoothies are measured on the y-axis and sodas are measured on the x-axis.
What is the absolute value of the slope of Mikaela's budget constraint today?
solved part A budget constraints yesterday 10*sodas + 4*smoothies = income 10*2 +... View the full answer