Answer to Question #167865 in Microeconomics for Gummy Bear

Question

Suppose you won $15 on a lotto ticket at the local 7-eleven and decided to spend all the winnings on candy bars and bags of peanuts. The price of candy bars is $.75 and the price of peanuts is $.1.50. Construct a table showing the alternative combination of the two products that are available

Answer 1

I = $15, Pc = $0.75 each, Pp = $1.50 each.

A. The alternative combinations of the two products available are (0 candy bars; 10 bags of peanuts), (2; 9), (4; 8), (6;7), (8; 6), (10; 5), (12; 4), (14; 3), (16; 2), (18; 1) and (20; 0).