Alex distributes his monthly income of $600between two goods, movies and food. Byspending his entire income on movies, he canenjoy a maximum of 20 movies. On the otherhand, by spending his entire income on food hecan consume a total of 60 units of food. Assumethat food consumption is measured along thehorizontal axis and the consumption of movies ismeasured on the vertical axis. Calculate the slopeof Alex's budget line when the price of foodincreases to $20 while the price of movie remainsunchanged.-2/3- 1.5-2-3/4

here we calculate the budget line of Alex by using the given information and choose the correct , so…

Alex distributes his monthly income of $600 between two goods, movies and food. By spending his entire income on movies, he can enjoy a maximum of 20 movies. On the other hand, by spending his entire income on food he can consume a total of 60 units of food. Assume

Alex distributes his monthly income of $600 between two goods, movies and food. By spending his entire income on movies, he can enjoy a maximum of 20 movies. On the other hand, by spending his entire income on food he can consume a total of 60 units of food. Assume

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Alex distributes his monthly income of $600
between two goods, movies and food. By
spending his entire income on movies, he can
enjoy a maximum of 20 movies. On the other
hand, by spending his entire income on food he
can consume a total of 60 units of food. Assume
that food consumption is measured along the
horizontal axis and the consumption of movies is
measured on the vertical axis. Calculate the slope
of Alex's budget line when the price of food
increases to $20 while the price of movie remains
unchanged.
-2/3
- 1.5
-2
-3/4

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