What’s in Your Budget?

Business Finance

Rice measured along vertical axis, beans along horizonal. Endpoints are (0,8) and (12,0)

Your new “bulk me up” diet allows you to consume only rice and beans. The price of rice is $1.50/lb. If the diagram above shows your budget constraint:

a) what is the price of beans?
b) how big is your budget according to the diagram below?
c) how much are you spending at point (6,4)?

This is a 10-point question, so please frame the correct answer to each part as at least one complete sentence (not just a dollar amount of a number), with an explanation of how you arrived at that answer. 3 points for each correct answer with explanation plus an additional point for continuity–the answers should flow from one to the next. Any response that seems to quote too extensively from your text OR from any related internet discussion will receive NO points.
(This should be easy; you’re welcome.)

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