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Suppose a Consumer Has an Income I=$50\mathrm { I } = \$ 50

Question 57

Multiple Choice

Suppose a consumer has an income I=$50\mathrm { I } = \$ 50 which he/she spends on pizza and tacos per month. The price of pizza is $10\$ 10 and the price of tacos is $5\$ 5 . Letting Z=Z = the quantity of pizza per months and T=T = the number of tacos per month, the equation for the budget line is best represented by


A) 10=10Z+5T10 = 10 Z + 5 T
B) 1000=20Z+10T1000 = 20 Z + 10 T
C) 50=10Z+5T50 = 10 Z + 5 T
D) 1000=A+B1000 = A + B

Correct Answer:

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