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Question 1
A student has a monthly budget of $120 to spend on either beers, which cost$6 each, or tacos, which cost \$4 each.

What is the largest number of beers that the student could afford to purchase in one month?

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Question 2
What is the largest number of tacos the student could afford to purchase in one month?

Hint

Question 3
Draw the student's budget constraint. Put beers on the x-axis and tacos on the y-axis.

Clear All Draw: Hint 1
Hint 2

Question 4
Which combinations of beers and tacos are unaffordable?

Hint

Question 5
Indicate which combinations would leave some budget unspent.

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Question 6
What is the equation for the student's budget constraint? In your equation, use Q1 as the variable to represent the quantity of beers and Q2 to represent the quantity of tacos.

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Question 7
What is the opportunity cost of a beer?

tacos
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Question 8
What is the opportunity cost of a taco?

beers
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Question 9
How can one see the opportunity cost on the graph?

Hint