Answer to Question #123014 in Microeconomics for Javeria

Question

jerry has $12 a week to spend on yogurt and magazines .The price is $2 and price of magazine is $4

1- list the combinations of yogurt and magazines that jerry can afford .Draw a graph of Jerry'ss Budget line with the quantity of magzines plotted on the X-axis

Answer 1

Jerry can buy 6 yogurts and 0 magazines; 4 yogurts and 1 magazine; 2 yogurts and 2 magazines; and, 0 yogurts and 3 magazines.