price of the car increases by $2500. a. Illustrate the various combinations of style (S) and gas mileage (G) that Brenda could select with her $25,000 budget. Place gas mileage on the horizontal axis. For every $5000 she spends on style the index rises by one, so the most she can achieve is a car with a style index of 5. For every $2500 she spends on gas mileage the index rises by one, so the most she can achieve is a car with a gas-mileage index of 10. The slope of her budget line is therefore 1/2 as shown by the dashed line in the diagram for part b.
