Answer to Question #219837 in Microeconomics for Kiki

Question

If the consumer is spending all his budget on Y and X when B=36;P(price) of X is 2 and P(price) of Y is 6 find the budget constraint equation

Answer 1

budget constraint equation is given by

Income=price of product one multiply by Quantity one plus Price of Quantity two multiply by Quantity two

I=P1XQ1+P2XQ2

In our case Income is 36

Price of product X is 2

Price of product Y is 6

equation

36=2 x X + 6 x Y