Attempts Attempt 1 score is2 Attempt 2 score is2   Keep the Highest 2 out of 42 / 4 1. An individual's budget Suppose Bob has a weekly budget of $24 to spend on oat milk and peanut butter. Oat milk is priced at $2 per quart, and peanut butter is priced at $6 per jar. If Bob spends his entire $24 on oat milk, he can buyquarts of oat milk. If he spends his entire $24 on peanut butter, he can buyjars of peanut butter. Use the blue line (circle symbol) to plot Bob's budget constraint on the following graph. Next, use the orange point (square symbol) to shade the area that represents combinations of oat milk and peanut butter that are affordable for Bob. Finally, place the black point (plus symbol) on the point on Bob's budget constraint that corresponds to a scenario in which Bob spends $12 on each good. Note: Dashed drop lines will automatically extend to both axes. BC 1 ($24) Affordable Region $12 on Each BC 2 ($48) 0 2 4 6 8 10 12 14 16 18 20 22 24 24 22 20 18 16 14 12 10 8 6 4 2 0 PEANUT BUTTER (Jars) OAT MILK (Quarts) 11, 12 What does the slope of Bob's budget constraint represent? The cost of an additional jar of peanut butter in terms of dollars The cost of an additional quart of oat milk in terms of dollars The opportunity cost of an additional quart of oat milk in terms of jars of peanut butter The opportunity cost of an additional jar of peanut butter in terms of quarts of oat milk Suppose Bob receives $24 from his relative and decides to commit this money to purchasing more oat milk and peanut butter. Using the green line (triangle symbol), draw Bob's new budget constraint on the preceding graph. True or False: Bob faces the same tradeoff between oat milk and peanut butter. True False