QUESTION 2 A consumer has an income of $35,078. He consumes only two goods, pizz
ID: 2440854 • Letter: Q
Question
QUESTION 2 A consumer has an income of $35,078. He consumes only two goods, pizza and soda. Pizza costs $1.08 each and a soda costs $2.35. If pizza is on the vertical axis, what is the intercept on the vertical axis? (Do not forget to include the sign and round to two decimal places) QUESTION 3 What does your answer to the question above represent o a. The maximum number of pizza slices this individual can afford to consume. e b. The maximum number of soda cans this individual can afford to consume. O c. The optimal number of pizza slices this individual would like to consume. d. The optimal number of soda cans this individual would like to consume.Explanation / Answer
2. Ans: 32,479.63
Explanation:
Intercept in the vertical axis = $35,078 / $1.08 = 32,479.63
3. Ans: The maximum number of pizza slices this individual can afford to comsume.