Chapter 2: Choice in a World of Scarcity
Practice
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Question 1 of 27Self-Check Questions
1
Suppose Alphonso’s town raised the price of bus tickets from $0.50 per trip to $1 per trip (while the price of burgers stayed at $2 and his budget remained $10 per week.) Draw Alphonso’s new budget constraint. What happens to the opportunity cost of bus tickets?