Julia frequently drinks cups of coffee and tea during the semester. Big World sells coffee for $3.00 and tea for $1.50. Julia has $15.00 a week from her campus job for her coffee and tea consumption. Part A a. If Julia buys 2 cups of coffee, how much money does she have left for tea? How many cups of tea can she buy? What about if she buys 4 cups of coffee? b. Sketch Julia's budget constraint for coffee and tea on the diagram next page. Assume that one grid line is one unit of coffee or tea. c. Write down an equation for Julia's budget constraint. What is the slope of the budget constraint? What does this tell us about the prices of coffee and tea? d. Using Julia's indifference curves drawn below, how much tea and how much coffee will Julia consume each week? Mark this point on the diagram below as "point A." What is the slope of Julia's indifference curve at point A?

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter5: Linear Inequalities
Section5.6: Graphing Ineualities In Two Variables
Problem 29PPS
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Julia frequently drinks cups of coffee and tea during the semester. Big World sells coffee for $3.00
and tea for $1.50. Julia has $15.00 a week from her campus job for her coffee and tea consumption.
Part A
a. If Julia buys 2 cups of coffee, how much money does she have left for tea? How
many cups of tea can she buy? What about if she buys 4 cups of coffee?
b. Sketch Julia's budget constraint for coffee and tea on the diagram next page.
Assume that one grid line is one unit of coffee or tea.
c. Write down an equation for Julia's budget constraint. What is the slope of the
budget constraint? What does this tell us about the prices of coffee and tea?
d. Using Julia's indifference curves drawn below, how much tea and how much coffee
will Julia consume each week? Mark this point on the diagram below as "point A."
What is the slope of Julia's indifference curve at point A?
Transcribed Image Text:Julia frequently drinks cups of coffee and tea during the semester. Big World sells coffee for $3.00 and tea for $1.50. Julia has $15.00 a week from her campus job for her coffee and tea consumption. Part A a. If Julia buys 2 cups of coffee, how much money does she have left for tea? How many cups of tea can she buy? What about if she buys 4 cups of coffee? b. Sketch Julia's budget constraint for coffee and tea on the diagram next page. Assume that one grid line is one unit of coffee or tea. c. Write down an equation for Julia's budget constraint. What is the slope of the budget constraint? What does this tell us about the prices of coffee and tea? d. Using Julia's indifference curves drawn below, how much tea and how much coffee will Julia consume each week? Mark this point on the diagram below as "point A." What is the slope of Julia's indifference curve at point A?
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