My Name Is: _________________________________
Quiz 1
Use the space below and the back to neatly write out and clearly indicate your answers. Harry
likes donuts (d), and coffee (c). Each donut costs $3, while each cup of coffee costs $4. Harry
has $24 to spend on donuts and coffee each week.
1) Write down Harry’s budget equation representing his budget line [1pt].
2) Sketch and label Harry’s budget line to scale in the graph below. Be sure to label the values
where the budget line intercepts the horizontal and vertical axes [1pt].
3) Harry’s wife tells him he can only have 900 calories, and each donut has 150 calories, while
coffee has no calories. Write down an equation that represents Harry’s calorie constraint line
[1pt]. In Figure 1, sketch and label Harry’s calorie constraint line and shade in his budget set –
the set of feasible combinations of donuts and coffee given his two constraints [1pt]. Label the
intersection of the two constraints with its coordinates [1pt].
My Name Is: _________________________________
4) The coffee shop where Harry buys donuts and coffee started putting sugar in the coffee, so
that each cup of coffee now has 100 calories. Harry’s wife still says he can only have 900
calories. Write down an equation that represents Harry’s calorie constraint [1pt].
5) In Figure 2 with donuts on the horizontal axis and cups of coffee on the vertical axis, sketch
and label Harry’s budget line (he still has just $24 and prices did not change), his new calorie
constraint (he still only consumes 900 calories), and shade in his budget set [1pt]. Find the
coordinates of the point where the budget line and the calorie constraint intersect. Show your
work [2pts]. Label the values of the axis intercepts and label the kink on his budget set with its
coordinates [1pt].