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katovenus [111]
3 years ago
15

Suppose Alphonso’s town raised the price of bus tickets to $1 per trip (while the price of burgers stayed at $2 and his budget r

emained $10 per week.) Draw Alphonso’s new budget constraint. What happens to the opportunity cost of bus tickets?

Business
1 answer:
solong [7]3 years ago
4 0

Answer:

(attached graph)

The increase in the ticket price makes the budget line slope to decrease. There will be less ticket available for Alphonso.

The increase in the bus tickets makes the opportunity cost of the hamburger to decrease as now, consuming an hamburger will make Alphonso renounce to a lesser amount of bus tickets. As the the opportunity cost is the goods or services we don't consume in favor for those we do.

Explanation:

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3 years ago
The corporate charter of Alpaca Co. authorized the issuance of 10 million, $1 par common shares. During 2021, its first year of
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Answer:

Alpaca Co.

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Date         Number of shares issued    Price    Common Stock  Additional

January 1 sold 8 million shares at         $15     $8 million           $112 million

June 3 retired 2 million shares at         $18      (2 million)            (34 million)

December 28 sold 2 million shares    $20       2 million              38 million

Total                                                                 $10 million           $116 million

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