Linda loves buying shoes and going out to dance. It costs Linda $50 to buy a new pair of shoes or to spend an evening out dancing. Assume that she has $500 to spend on shoes and dancing. What is the equation for her budget line? Draw it with T on the vertical axis and label the slope and intercept.

Linda loves buying shoes and going out to dance. It costs Linda $50 to buy a new pair of shoes or to spend an evening out dancing. Assume that she has $500 to spend on shoes and dancing. What is the equation for her budget line? Draw it with T on the vertical axis and label the slope and intercept.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section21.1: The Budget Constraint: What The Consumer Can Afford

Problem 1QQ

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Linda loves buying shoes and going out to dance. It costs Linda $50 to buy a new pair of shoes or to spend an evening out dancing. Assume that she has $500 to spend on shoes and dancing.

What is the equation for her budget line? Draw it with T on the vertical axis and label the slope and intercept.

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