Problems: Review
Problems: Plan, Market, and Firm

Problems: Foundations of Supply: Yoga and Lattes

Suppose that we have an economy with four workers. Paris H. can teach 3 yoga lessons or make 20 lattes a shift. Kim K. can teach 2 yoga lessons or make 8 lattes a shift. Mike S. can teach 1 yoga lesson or make 40 lattes a shift. And Pauly D. can teach 4 yoga lessons or make 4 lattes a shift. Suppose customers are willing to pay $4 each for lattes and $15 for yoga lessons.

  1. Who should teach yoga?
  2. Who should pull lattes?
  3. How many lattes will the economy make and how many yoga lessons will it teach?