Question

Suppose a consumer only buys two goods. Hot dogs and hamburgers. Suppose the price of hot dogs is 1. The price of hamburger is 2 and the consumers income is 20

Answer 1

If a consumer only buys hot dogs and hamburgers, the price of hot dogs is 1, the price of hamburger is 2, and the consumers income is 20, then the budget line equation is:

Qhd + 2Qh = 20.