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Budget line with burritos on the vertical axis

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Reference no: EM131218418

A Syracuse University freshman likes Chipotle burritos and Starbucks lattes. The price of one burrito is $1 and the price of one latte is $0.50. However, Starbucks is running the following promotion: If a freshman brings in the latte cup back to Starbucks, he gets a refund of $0.20 for every cup beyond the first 12 that he returns. Assume that a freshman has $40 to spend on burritos and lattes. Draw his budget line with burritos on the vertical axis and lattes on the horizontal axis. Make sure to carefully label your graph and all the relevant points.

Reference no: EM131218418

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