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The Budget Constraint for a Consumer Who Only Buys Apples

Question 42

Multiple Choice

The budget constraint for a consumer who only buys apples (A) and bananas (B) is PAA + PBB = I where consumer income is I, the price of apples is PA, and the price of bananas is PB. To plot this budget constraint in a figure with apples on the horizontal axis, we should use a budget line represented by the slope-intercept equation:


A) A = -I/PA + (PB/PA) B
B) A = I/PA - (PB/PA) B
C) B = -I/PB + (PA/PB) A
D) B = I/PB - (PA/PB) A

Correct Answer:

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