**Budget Constraint Problem**Consider the following budget constraint. Dennis spends all his money on sweaters and sweatshirts. If the price of sweaters is $15, how much money does Dennis have in his budget?**Graph Description:**- The graph is a coordinate plane with "Sweatshirts" labeled on the vertical axis and "Sweaters" on the horizontal axis.- The vertical axis (y-axis) represents the number of sweatshirts, ranging from 0 to 8.- The horizontal axis (x-axis) represents the number of sweaters, ranging from 0 to 9.- A straight line extends from the point (0, 5) on the y-axis to the point (7, 0) on the x-axis, indicating the budget constraint.**Answer Choices:**- $178- $105- $7- $75In this context, Dennis's budget can be calculated using the line's endpoints. If he buys zero sweaters, he can afford 5 sweatshirts; if he buys zero sweatshirts, he can afford 7 sweaters. With the price of sweaters at $15, calculate Dennis's total budget.

Following budget constraint is given:Price of sweater = $15

Answered: Consider the following budget…

Consider the following budget constraint. Dennis spends all his money on sweaters and sweatshirts. If the price of sweaters is $15, how much money does Dennis have in his budget?

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

**Budget Constraint Problem**

Consider the following budget constraint. Dennis spends all his money on sweaters and sweatshirts. If the price of sweaters is $15, how much money does Dennis have in his budget?

**Graph Description:**

- The graph is a coordinate plane with "Sweatshirts" labeled on the vertical axis and "Sweaters" on the horizontal axis.
- The vertical axis (y-axis) represents the number of sweatshirts, ranging from 0 to 8.
- The horizontal axis (x-axis) represents the number of sweaters, ranging from 0 to 9.
- A straight line extends from the point (0, 5) on the y-axis to the point (7, 0) on the x-axis, indicating the budget constraint.

**Answer Choices:**

- $178
- $105
- $7
- $75

In this context, Dennis's budget can be calculated using the line's endpoints. If he buys zero sweaters, he can afford 5 sweatshirts; if he buys zero sweatshirts, he can afford 7 sweaters. With the price of sweaters at $15, calculate Dennis's total budget.

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