Please answer each question separately
1. Explain why scarcity leads to tradeoffs?
2. What are diminishing marginal returns?
3. Suppose Alphonso’s town raises the price of bus tickets from $0.50 to $1 and the price of burgers rises from $2 to $4.
Why is the opportunity cost of bus tickets unchanged?
Suppose Alphonso’s weekly spending money increases from $10 to $20. How is his budget constraint affected from all three changes? Explain.
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