13. When Billy finds himself on the monthly budget constraint shown to the right he chooses bundle A as shown. How many sodas does Billy buy in a month when he chooses A?

   We know that Billy's income is $150, burritos cost $1.50 each and sodas cost $1.25 each. 60 burritos cost $90 ($1.50 x 60). This means that Billy has $150-$90 = $60 left to spend on sodas. He can buy $60 ÷ $1.25 = 48 sodas.

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