4. Problems and Applications Q5

Jacques buys only milk and cookies.

In year 1, Jacques earns $90, milk costs $2 per quart, and cookies cost $3 per dozen.

Use the green line (triangle symbol) to draw Jacques's budget constraint on the following graph.

50 A 45 Initial Budget Constraint 40 35 O 30 New Budget Constraint Milk 25 20 15 10 5 10 15 20 25 30 35 40 45 50 Cookies (Dozens)