Marc has a budget of $20 a month to spend on root beer and DVDs. The price of root beer is $5 a bottle, and the price of a DVD is $10. Figure 2 illustrates his preferences. Use Figure 2 to work Problems. What is the relative price of root beer in terms of DVDs and what is the opportunity cost of a bottle of root beer? Draw a graph of Marc's budget line with DVDs on the x-axis.
