Answer to Question #273806 in Microeconomics for Ashes

Question #273806

Kali lives on mangoes and avocados, Pm = $5, Pa = $10, and her income is $200.Identify her budget constraint equation and illustrate Kali’s budget line on a graph

with eggplants on the horizontal axis and soursop on the vertical axis.


1
Expert's answer
2021-11-30T18:16:55-0500

Equation of Budget constraint is:

"P_mm+P_aa=M"

where Pm is the price of mangoes

Pa is the price of avocados 

m is the number of mangoes

a is the number of avocados

M is the income level.

Budget constraint equation:

"5m+10a = 200"

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

No comments. Be the first!

Leave a comment

LATEST TUTORIALS
New on Blog
APPROVED BY CLIENTS