Asked by
pretty ngobeni
on Dec 01, 2024
Verified
if you have an income of $18 to spend, if commodity 1 cost $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) (x1 + x2) /12 = 18.
C) x1 + 3x2 = 6.
D) 4x1 + 10x2 = 19.
E) 12(x1 +x2) = 18.
Budget Line
A graphical representation of all possible combinations of two goods that can be purchased with a given income and prices.
Commodity 1
A basic good used in commerce that is interchangeable with other goods of the same type, typically referred to when discussing market transactions.
- Gain proficiency in the understanding of budget constraints and the calculation of goods combinations purchasable with a specified level of income.
- Employ math know-how to resolve concerns linked to budgetary cutbacks and the capability of buying.
Verified Answer
BB
Learning Objectives
- Gain proficiency in the understanding of budget constraints and the calculation of goods combinations purchasable with a specified level of income.
- Employ math know-how to resolve concerns linked to budgetary cutbacks and the capability of buying.