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Suppose Alphonso’s town raises the price of bus tickets from $0.50 to $1 and the price of burgers risesfrom $2 to $4. Why is the opportunity cost of bus tickets unchanged? Suppose Alphonso’s weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain.

Hence, the budget constraint remains unchanged from all the three changes, namely price of busticket, price of burger and $A^{\prime}$ s income.

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Okay, so this problem says that supposed Alfonso's town raises the price of bus tickets from 0.5 21 in the price of the burgers faces from to 24 Why see opportunity cost of bus tickets unchanged. So first of all, we need to understand what the opportunity cost beats. So economics. It's used to turn opportunity cost to indicate what must be given up to obtain something that he's desired. The idea behind opportunity cost is that the cost of one item is the last opportunity to do or consume something else. In short opportunity, cost is devalued off the next best alternative. And here, since the alternative for the busting kids are the burgers, we want to know that, um, for the price that we pay for each bus tickets, how many burgers that we can pie. So before we know that for each of the post tickets, the prize is gonna be 0.5 and then we do idea that by the price of the burgers, which is two. And then we know that for each of them first tickets that were per chase, we give up the opportunity off buying 1/4 off the burgers and then after we d like to prize for it a post tickets by the price of the burgers, which is still 1/4 off the burgers. And then from here, you know, the two Spencers are gonna say then secondly, we want to know that how the logical strain has changed from all of three changes. So, first of all, the budget constraint here, it's gonna be the budget equals the price off the burgers, times the quantity off the burgers, plus the price off the busting kids times the quantity I think it. So before you know that the budget is gonna be $10 and that you close to the price of the burgers, which is two daughters times the quantity off the burgers, plus the price of the post tickets, which is 0.5 times the quality off bus tickets that we're gonna, um, Bria ranches equation to sew for Ed. So, first of all, we simply fight this equation by multiplying both sides by two. So that is gonna be 20 equals four times the quantity off burgers, plus one times the quantity off the bus tickets. And then we subtract one bus ticket from both sides, so it is going to be 20 minus. The quantity for bus tickets equals four times the quantity off burgers. And finally we divide each side by four to you. T answer. So that is going to be five minus 0.25 off the quantity off a bus ticket, and that equals to the quantity off the burgers. Or we could also write it as the quantity off the burgers equals five minus 50.25 off the quantity off bus tickets and then after ISS similarity. The budget off $20 equals the price off the burgers, which is $4 times the quantity off burgers plus surprise off bus tickets, which is one times the quantity off busting kids. And then some money. We subtract a one bus ticket from both sides that is going to be 20 minus. The quantity for bus to kids equals four times the quantity off burgers. And then we. So we delight both sides by four and yet five minus 50.25 times the quantity off bus tickets because the quantity off burgers or you write it us the quantity for burgers. He calls five times 0.25 times the quantity for bus tickets. So again we see that those two answers card the same. So from here, we know that the budget constraint remains unchanged from all three changes. They lead the price of a bus ticket, the price of Burger and Alfonso's income.

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