Camille is at the candy store with Grandma Mary, who offers to buy her $12 worth of candy. If lollipops are $2 each and candy bars are $3 each, what combination of candy can Camille's Grandma Mary buy her? Multiple Choice six lollipops and four candy bars four lollipop and two candy bars two lollipops and three candy bars three lollipops and two candy bars
A budget set, also known as a budget constraint, is a fundamental concept in economics and consumer theory. It represents the different combinations of goods and services that a consumer can afford given their budget (income) and the prices of the goods and services in question.
Here, Camille's budget set is determined by the amount of money her grandma Mary has given her to spend on candy, which is $12. This is her budget (income). The prices of the two types of candy, lollipops and candy bars, determine how she can allocate her budget to purchase these candies. The price of lollipops is $2 each, and the price of candy bars is $3 each.
Camille budget set can be expressed as:
B = (Pl * L) + (Pc * C)
Where:
- B is Camille's budget ($12 in this case).
- Pl is the price of lollipops ($2 each).
- Pc is the price of candy bars ($3 each).
- L is the quantity of lollipops she buys.
- C is the quantity of candy bars she buys.
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