analyze spending in the prior year (Budget 1) and the current budget (Budget 2) for this year.
Scenario
Your child is starting a two-year culinary program at the community college this year and was awarded a small grant to cover some of the cost. You need to adjust your budget to help them with tuition and other expenses, as well as consider and project future economic trends. At the beginning of this year, the cost of housing rose, as there were more renters than rental units. Trade decisions have made some imported items more expensive than they were last year. The family’s income changed slightly, but because of these economic changes, you will need to modify the yearly budget. You must analyze spending in the prior year and the budget for this year. Your family might be unhappy with some of your decisions about where to spend less or more, so you must be prepared to explain your choices to them.
complete the following: answers in the template attached week 3 assignment template to the questions**
1*Describe how a relevant economic concept applies to a scenario.
2*These could include concepts such as supply and demand, scarcity, tradeoff decisions, inflation, and opportunity costs. Choose at least one economic concept and describe how it is relevant to the scenario and your two budgets.
3*Review the scenario for at least one economic concept and describe how it applies to the scenario.
4*Summarize the change in expenditures between budgets.
5* Prepare a summary of what did and did not change between the two budgets.
6*Describe the economic trends that created the need for a change in expenditures.
7*Think about the economic trends that created the need for you to make the budget decisions that you did.
8* Make connections to the economic concepts you have learned.
9*Provide a rationale for budget decisions made in response to economic changes.
10*Explain the reasons for your choices to the family.
Address all expenditures and discuss long-term effects of the changes you are making, as well as why you left any items unchanged.
11*Reflect on how changes in economic variables may affect your personal life and finances.
12*Think about how changes in the economy have affected or are affecting your personal life and finances.
*Address all components of the assignment prompt and use the assignment description to structure text.