3.5 Consider you will organize a party. Your budget is $2000 and you will providechampagne (pchampagne-$50) and oysters (poyster=$20).a) Show all possible combinations of champagne and oysters graphically.b) A friend adds $1000 to your party budget. What are the effects on your budget line?c) The store you usually buy your champagne is closed. Now you are forced to buy thechampagne at the store in the neighbor town. There the price of champagne is $75.What effect has the higher champagne price on your budget line (Budget $6000)?

Initially, the budget (M) is $2000 Price of champagne =$50 Price of oysters =$20 In the case of…

Consider you will organize a party. Your budget is $2000 and you will provide pagne (pchampagne-$50) and oysters (poyster=$20). O Show all possible combinations of champagne and oysters graphically. A friend adds $1000 to your party budget. What are the effects on your budget line? The store you usually buy your champagne is closed. Now you are forced to buy the champagne at the store in the neighbor town. There the price of champagne is $75. What effect has the higher champagne price on your budget line (Budget $6000)?

Consider you will organize a party. Your budget is $2000 and you will provide pagne (pchampagne-$50) and oysters (poyster=$20). O Show all possible combinations of champagne and oysters graphically. A friend adds $1000 to your party budget. What are the effects on your budget line? The store you usually buy your champagne is closed. Now you are forced to buy the champagne at the store in the neighbor town. There the price of champagne is $75. What effect has the higher champagne price on your budget line (Budget $6000)?

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter12: Labor Markets And Labor Unions

Section: Chapter Questions

Problem 3QFR

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