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Answer :
Final answer:
The new budget equation, when the price of a pop falls to $4, is Qp = 20 - 16Qm.
Explanation:
To find the new budget equation, we need to substitute the new price of a pop, which is $4, into the initial budget equation.
The initial budget equation is Qp = 20 - 4Qm.
Substituting the new price of a pop, we get Qp = 20 - 4Qm = 20 - 4(4)Qm = 20 - 16Qm.
Therefore, the new budget equation is Qp = 20 - 16Qm.
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