Question

a person has 100 dollar to spend on two goods x and y whose respectively prices are 3 dollar and 5 dollar.

draw the budget line.

Answer 1

Solution:

$$p_x=3, G_x=\frac {100}{3}=33\frac{1}{3}$$ $$p_y=5, G_y=\frac{100}{5}=20$$