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    Principles of Microconomics
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    Exam 6: Household Behavior and Consumer Choice
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    Misty Spends Her Entire Weekly Allowance of $15 on Two
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Misty Spends Her Entire Weekly Allowance of $15 on Two

Question 1

Question 1

Essay

Misty spends her entire weekly allowance of $15 on two goods: T-shirts (which cost $10 each) and lipstick (which costs $5). What is the opportunity cost of a T-shirt? If her parents raise her allowance to $20 per week, what happens to the opportunity cost of a T-shirt?

Correct Answer:

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