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. The price of candy bars is $0.75 and the price of peanuts is $1.50.
a. Complete the table below showing the alternative combinations of the two products that are available.
Instructions:Enter only whole numbers.
Consumption Alternatives
Goods A B C D E F
Candy Bars 0 4 8 12 16 20
Bags of Peanuts
b. Use the data in the above table to plot a budget line in the graph with candy bars on the horizontal axis.
Instructions: Use the line tool to draw a single line (Budget). This line should only contain the two endpoints.
Instructions: In the following responses, if you are entering any negative numbers be sure to include a negative sign (-) in front of those numbers. Round your answers to one decimal place.
What is the slope of the budget line?
Do these opportunity costs rise, fall, or remain constant as each additional unit of the product is purchased?
What is the opportunity cost of one more candy bar? bags of peanuts
What is the opportunity cost of one more bag of peanuts? candybars
c. Does the budget line tell you which of the available combinations of candy bars and bags of peanuts to buy?
Yes; it tells you which of the available combinations of candy bars and bags of peanuts to buy.
No; it only tells you what is possible.
d. Suppose that you had won $30 on your ticket, not $15. Is the slope of a new budget line flatter, steeper, or the same as in the diagram above?
Has the number of available combinations increased or decreased?

D) if I had won $30, the slope would have been the same, the total number of items purchased would have changed, increasing the available combinations.