Asked by
Victoria Guardiola
on Dec 01, 2024
Verified
if you have an income of $18 to spend, if commodity 1 costs $3 per unit, and if commodity 2 costs $9 per unit, then the equation for your budget line can be written
A) x1/3 + x2/9 = 18.
B) 4x1 + 10x2 = 19.
C) x1 + 3x2 = 6.
D) (x1 + x2) /12 = 18.
E) 12(x1 + x2) = 18.
Budget Line
A graphical representation of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.
- Acquire comprehension of the concept of a budget limit and the techniques to work out the combinations of goods that can be purchased under a defined budget.
- Apply arithmetical skills to address issues pertaining to fiscal restrictions and the efficacy of purchasing power.
Verified Answer
WF
Learning Objectives
- Acquire comprehension of the concept of a budget limit and the techniques to work out the combinations of goods that can be purchased under a defined budget.
- Apply arithmetical skills to address issues pertaining to fiscal restrictions and the efficacy of purchasing power.