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1. A student has a monthly budget of $120 to spend on either pizza rolls, which cost $6 each, or sodas, which cost $4 each.

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

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

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3. Draw the student's budget constraint. Put pizza rolls on the x-axis and sodas on the y-axis.

Clear All Draw: Line

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Hint 2

4. Which combinations of pizza rolls and sodas are unaffordable?

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5. Indicate which combinations would leave some budget unspent.

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

 
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7. What is the opportunity cost of a pizza roll?

  sodas
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8. What is the opportunity cost of a soda?

  pizza rolls
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9. How can one see the opportunity cost on the graph?

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