Answer to Question #192148 in Microeconomics for Joanne Chahwan

Question

hector has 2000$ a month to spend on clothing and food. the price of clothing is $50 and the price of food is 20. the clothing and food pairs in hector's choice include units of clothing and units of food

Answer 1

Given: Income = $2000

price of clothing = $50

Price of food=$20

Budget constraint of hector :

$50C+20F=2000$

where C is the units of clothing

and F is the units of food.

$50(24)+20(40)=2000$

Therefore, Units of Clothing = 24 and units of food is 40.