(Solution) - Suppose that the price of cola rises to 3 00 a -(2025 Original AI-Free Solution)

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Academic Level: Undergrad. (yrs 3-4)

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Suppose that the price of cola rises to $3.00 a can and the price of popcorn and Sara?s income remain the same. What quantities of cola and popcorn does Sara now buy? What are two points on Sara?s demand curve for cola? Draw Sara?s demand curve.
Sara?s income is $12 a week. The price of popcorn is $3 a bag, and the price of cola is $1.50 a can. Figure 9.14 shows Sara?s preference map for popcorn and cola.