2. David gets $3 per week as an allowance to spend any way he pleases.

Since he likes only peanut butter and jelly sandwiches, he spends the entire

amount on peanut butter (at $0.05 per ounce) and jelly (at $0.1 per ounce).

Bread is provided free of charge by a concerned neighbor. David is a picky eater

and makes his sandwiches with exactly 1 ounce of jelly and 2 ounces of peanut

butter. He is set in his ways and will never change these proportions.

a) How much peanut and jelly will David buy with his $3 allowance per

week?

b) Suppose the price of jelly increases to $0.15 per ounce. How much of each

commodity would be bought?

c) By how much should David's allowance be increased to compensate for

the rise in the price of jelly in part b?

d) Graph your results of part a through part c.

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