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Johnny Rotten consumes two commodities, namely garbage and vinyl records. He keeps the garbage in the backyard where it is eaten by goats and vermin. The reason he accepts the garbage is that people pay him $2 per sack for taking it. Johnny can accept as much garbage as he wishes at that price. He has no other source of income. Each record costs him $6.
a) If Johnny accepts zero sacks of garbage, how many records can he buy?
b) If he accepts 15 sacks of garbage, how many records can he buy?
c) Write down an equation for his budget line?
d) Draw Johnny's budget line and shade in his budget set.
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For several months before your vacation trip to germany,you fiind out that the exchange rate for the peso has increased relative to the euro. are you pleased or saddened explain.
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