Little Jonny was a little boy with many wants and needs. After a recent trip to Toys R Us, He begged his mom the new lightsaber that cost $20. She explained that he was experiencing an economic want. She said this was a desire that can be satisfied by consuming a good, like a lightsaber, a service or a leisure activity, such

as playing with the lightsaber.

"But it will make it will make me so happy, I have to buy that lightsaber", Jonny asserted, with his arms crossed. Jonny's mom sternly explained that if he wanted the lightsaber bad enough, and it was essential to increasing his happiness, he must buy it himself. "But I have no money, how am I support to buy something without any money!?" Jonny begged with the biggest puppy dog eyed. Jonny's mother quickly told him he better start thinking of ways to earn an income.

Jonny thought about what his mother had said about economic wants. He pondered long and hard about the goods that people would want to buy or a service he could provide. He thought of all the things that make him happy, and finally it came to him.

He would become an entrepreneur by starting a lemonade stand!

He knew what he the recipe needed. He had to get lemons, sugar and cups because he would use the ice from his own freezer. He had to think of the cost of his new business because the goal was to make some money (twenty dollars to be exact). These costs are going to be something he has to give up by paying for them before he could even begin. The benefit would be the new lightsaber at the end, the only thing he was looking to gain.

Jonny asked his mother and agreed to pay the start-up cost of his business back once he received an income. Off they were to the grocery store were Jonny soon found another problem.

Jonny had to find the total of how much his costs would be. He would then determine how much he would have to charge per cup to make a profit.

He first found a bag of lemons, containing 25 lemons, for $4. With each cup of lemonade needing three lemons, he grabbed three bags. He then searched for a 10 pound bag of sugar and decided he was going to get two.

Once he found them, he discovered that for both bags of sugar, it was twice the price as one bag of lemons. How much was the sugar?

The last thing he had to grab were cups. He found a sale for fifty cups and decided to grab two. At the check out He began walking to the check out. He discovered that his total for the lemons, sugar and cups was $26.

As he was walking out he wondered how good of a sale he got for each package of cups. He knew each bag of lemons was $4, and saw three in his cart. There were two bags of sugar, that together cost twice as much as one bag of lemons.

The total came to $26, and he got two packages of cups, how much was each package of cups?

When he got home he got to work setting up his stand, while his mom helped make the lemonade inside. He stood outside from ten in the morning until four in the afternoon. The next day he stood outside from nine in the morning until five in the afternoon.

Jonny sold his lemonade for $0.55 a cup. On the first day Jonny sold sixty cups of lemonade. The next day he decided to raise the price per cup to $0.65, but only sold half as many cups.

How much income did Jonny make? How much profit did he make once he gave his mom back the $26 for the start up cost?

Jonny jumped for joy when he discovered he finally had enough money for his lightsaber and immediately ran to the store.

As he walked through the aisle and saw the new toys, he discovered the opportunity cost of buying his new lightsaber because he had the money to buy any toy he wanted. There were so many toys he would have to give up to get this lightsaber. So he thought long and hard...