Chapter 5. Consumer Choice

PROBLEMS

  1. Use this information to answer the following 4 questions: Marie has a weekly budget of $24, which she likes to spend on magazines and pies.
  2. If the price of a magazine is $4 each, what is the maximum number of magazines she could buy in a week?
  3. If the price of a pie is $12, what is the maximum number of pies she could buy in a week?
  4. Draw Marie’s budget constraint with pies on the horizontal axis and magazines on the vertical axis. What is the slope of the budget constraint?
  5. What is Marie’s opportunity cost of purchasing a pie?

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UH Microeconomics 2019 Copyright © by Terianne Brown; Cynthia Foreman; Thomas Scheiding; and Openstax is licensed under a Creative Commons Attribution 4.0 International License, except where otherwise noted.