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Jean has a weekly lunch budget of $48, which she likes to spend on specialty coffee drinks and chicken salads.
Question 1: If the price of a special coffee drink is $4, what is the maximum number of special coffee drinks she could purchase per week?
Question 2: If the price of a chicken salad is $6, what is the maximum number of salads she could purchase per week?
Question 3: What is the opportunity cost for specialty coffee drinks?
Question 4: What is the opportunity cost for chicken salads?
Question 5: Explain how the principle of allocative efficiency will help Jean decide how to spend her budget?
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