Suppose you won $15 on a lotto ticket at the local 7-eleven and decided to spend all the winnings on candy bars and bags of peanuts. candy bars cost $0.75 each while bags of peanuts cost $1.50 each.(a) complete the table below showing the alternative combinations of the two products that are available. consumption alternativesgoods a b c d e f candy bars 0 4 8 12 16 20bags of peanuts

A: q1=0     q2= 10  

B: q1=4   q2=8    

C: q1=8  q2=6      

D: q1=12  q2=4

E: q1=16  q2=2

F: q1=20 q2=0

Explanation:

The budget constraint is $15. This is the amount of money to spend either all in candy bars or bags of peanuts or a combination of both.

Each candy bar costs $0,75 and a bag of peanuts costs $1,5. The budget equation is:

Y=0,75*q1+1,5*q2

Y= budget constraint

q1= quantity of candy bars consume

q2= quantity of peanuts bag consume

q1= (Y/0,75)-/1,5/0,75)*q2

q2=(Y/1,5)-(0,75/1,5)*q1

The maximum amount of candy bars= 20 (q1=15/0,75)

The maximum amount of peanuts bags= 10  (q2=15/1,5)

A:

q1=0     q2= 10  

B:

q1=4   q2=8     [q2=(15/1,5)-(0,75/1,5)*4]

C:

q1=8  q2=6      [q2=(15/1,5)-(0,75/1,5)*8]

D:

q1=12  q2=4

E:

q1=16  q2=2

F:

q1=20 q2=0

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