Jenny is a student at SVSU who lives off Tittabawasee Road, and she usually shops at the Meijer down the street. She is going to Meijer and she has $12 to spend. Jenny plans to use her $12 to buy
Cheetos®, which cost $3 per bag, and bottles of Sprite (2-liters), which cost $1 each. She will spend her
entire $12.
a) What are the possible ways Jenny could spend the $12 dollars on Cheetos & Sprite? List them all --
including purchases of only Sprite and only Cheetos.
b) What is the opportunity cost of consuming one bag of Cheetos? i. e. every time Jenny buys one bag of
Cheetos, how many bottles of Sprite is she giving up?
c) What is the opportunity cost of consuming one bottle of Sprite? i. e. every time Jenny buys one bottle
of Sprite, how many bags of Cheetos is she giving up?
d) There is no causality here, so neither variable is dependent or independent. Therefore, we will
arbitrarily assume that: