Suppose that you initially have $180 to spend on books or mo…

Written by Anonymous on February 2, 2026 in Uncategorized with no comments.

Questions

Suppоse thаt yоu initiаlly hаve $180 tо spend on books or movie tickets. The books start off costing $20 each and the movie tickets start off costing $9 each. Answer for each of the following situations: (show calculations for a-c) a.  What is the maximum amount of books and movie tickets you can purchase based on the scenario above? What is the opportunity cost of a book?  (4pts) b.  Assume that your budget increases  from $180 to $270 while the prices stay the same, what is the maximum amount your can purchase of each item now? (3pts) c. Your budget remains $180, and the price of books remains $20, but the price of movie tickets increases to $10.  What is the opportunity cost of a book now? (4pts) d.   How is your consumption possibilities similar to the production possibilities of a nation (guns vs. butter)?  How is it different?  (5pts)

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