Sara has $12 to spend on popcorn and cola. Popcorn is $3 a bag, and cola is $3 a can. Figure 1 illustrates Sara's preferences. Use
Figure 1 to work Problems.
Suppose that the price of cola falls to $1.50 a can and the price of popcorn and Sara's budget remain unchanged. What quantities of popcorn and cola does Sara buy now? What are two points on Sara's demand curve for cola?
