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In: Economics

Sophia spends all her money on gummy worms and apps for her smartphone. A pound of...

Sophia spends all her money on gummy worms and apps for her smartphone. A pound of gummy worms and a smartphone app each cost $2. Sophia’s parents give her an allowance of $80 and 2 pounds of gummy worms each month. Draw her opportu- nity set, assuming that she cannot sell the gummy worms to her friends. How does her opportunity set change if she can sell the gummy worms at the market price of $2?

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Rahul Sunny answered 10 months ago
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