Business
Business, 28.10.2020 16:40, shandrablue6896

Brenda likes hot dogs and Coca-Cola. Hot dogs cost $1 each and Coca-Cola costs $0.50 per bottle. There is a special promotion for Coca-Cola that will last for one month. If Brenda sends in the bottle tops from the Cokes she drinks during the next month, she will get a refund of $0.10 for every bottle cap beyond the first 12 that she returns. For example, 17 bottles will cost her $0.50 × 12 + $0.40 × 5 = $8. Brenda has $40 to spend on hot dogs and Coca-Cola during the next month. Draw her budget line with Cokes on the horizontal axis and hot dogs on the vertical axis. Find the points where the budget line hits the axes and the point where it has a kink. At each of these three points write down the quantities of each good consumed.

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Brenda likes hot dogs and Coca-Cola. Hot dogs cost $1 each and Coca-Cola costs $0.50 per bottle. The...

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