Assume that you have a budget of 30 to spend on milk and, Business Economics

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Assume that you have a budget of 30 to spend on milk and

Assume that you have a budget of $30 to spend on milk and cereal only. The price of milk is PM = $5 and the price of cereal is PC = $3.50.

a) Graph the budget constraint. Be sure to put the quantity of milk (QM) on the horizontal axis.

b) What is the slope of the budget constraint?

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Business Economics: Assume that you have a budget of 30 to spend on milk and

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Business Economics: Assume that you have a budget of 30 to spend on milk and

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