Question #289904
Given:
Px=100
Py=250
Budget=5,000
Solution:
Let x be the quantity of food consumed by the customer, y be the quantity of cloth consumed by the customer. In this case, the budget line has the equation:
5,000=Px⋅x+Py⋅y⇒
⇒5,000=100⋅x+250⋅y
The intercepts are:
- For the x-intercept, we have:
y=0⇒5,000=100⋅x+250⋅0⇒
⇒5,000=100⋅x⇒x=5,000÷100=50
Thus, x-intercept is (50, 0).
- For the y-intercept, we have:
x=0⇒5,000=100⋅0+250⋅y⇒
⇒5,000=250⋅y⇒y=5,000÷250=20
Thus, the y-intercept is (0,20).
Based on the equation of the budget line, the graph is:
Answer: the equation of the budget line is 5,000=100⋅x+250⋅y . The intercepts are: (0, 20) and (50,0).
Comments
Leave a comment