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)
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)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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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