Emi’s available income each week for expenditures on food (F) and clothing (C) is $40. The price of each unit of food is $2 and the price of each unit of clothing is $10. For each of the following, decide if a given consumption bundle is (a) within Emi’s consumption possibilities. Then decide (b) if it lies on her budget line or not (1) 5 units of food and 3 units of clothing (a) (b) (2) 4 units of food and 4 units of clothing (a) (b) (3) 10 units of food and 1 unit of clothing (a) (b)

ENGR.ECONOMIC ANALYSIS
14th Edition
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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 Emi’s available income each week for expenditures on food (F) and clothing (C) is $40.  The price of each unit of food is $2 and the price of each unit of clothing is $10.

  For each of the following, decide if a given consumption bundle is (a) within Emi’s consumption possibilities.  Then decide (b) if it lies on her budget line or not     

 

(1) 5 units of food and 3 units of clothing

    (a)

 

     (b)

 

(2) 4 units of food and 4 units of clothing

      (a)

 

      (b)

 

  (3) 10 units of food and 1 unit of clothing

 

                  (a)

 

                  (b)

 

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