1.5 units of good x can the consumer purchase if her income is $15 and she spends it entirely on purchasing good x.
A budget constraint in economics refers to all the combos of goods and services that a consumer can buy given current prices and his or her given income.
Consumer theory examines the parameters of consumer choices using the theories of a budget constraint and a preferential map.
In the two-good case, both theories have a ready graphical representation.
Consumers can only buy as much as their income allows, so they are limited by their budget.
The equation of budget constraint is:
*x +
*y = m
where
is the price of good X,
is the price of good Y,
x is units of good X,
y is units of goods Y,
and m is income.
m = 15
Px = 10
Py = 5
15 = 10x + 5y
Since she spends it entirely on purchasing good x
15 = 10x + 0
15 = 10x
x = 15/10
= 1.5
Hence, The consumer can purchase an amount of Good X = 1.5.
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The reason(s) that accountants use sales returns and allowances account to keep a complete record of sales returns and allowances to calculate operating efficiency.
An accountant is a practitioner of accounting or accountancy. Accountants who have verified competency through their expert associations' certification exam ·rely on ·ing ə-: the device of recording and summarizing commercial enterprise and monetary transactions and reading, verifying, and reporting the effects. also: the principles and tactics of this gadget. they studied accounting as a freshman. : work executed in accounting or by using accountants.
An Accountant facilitates agencies making critical monetary decisions by collecting, tracking, and correcting the corporation's budget. they may be accountable for economic audits, reconciling financial institution statements, and making sure financial information is correct for the duration of the yr.
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