Answer to Question #249010 in Microeconomics for Roshan

Question

5. Venkatesh is a student at JGU. He has a monthly budget of Rs. 2500 to spend on either samosas, which cost Rs. 50 each, or aloo-tikki burgers, which cost Rs. 30 each.

5a. What is the largest number of samosas that Venkatesh could afford to purchase in one month?

5b. What is the largest number of aloo-tikki burgers Venkatesh could afford to purchase in one month?

5c. Draw Venkatesh’s budget constraint. Put samosas on the x-axis and aloo-tikki burgers on the y-axis.

5d. Which combinations of samosas and aloo-tikki burgers are unaffordable? (choose 1 answer) a) Those to the left of the line in 5c. b) Those to the right of the line in 5c.

diagram. 

Answer 1

a.

$Number \space of \space samosa=\frac{budget}{price\space of \space samosa}\\=\frac{2500}{50}=50$

b.

$Number \space of \space burgers=\frac{budget}{price\space of \space burgers}\\=\frac{2500}{30}=83$

c.

d.

Those on the right of the line.