Answer:
The equation for Edmund's budget line is 6C - 24G = 48
Explanation:
A budget line shows all possible combinations of two commodities that a consumer can buy at a given income level and at given market prices of commodities. The equation of the budget line is as follows.
M = (Px).X + {Py).Y where
M = Income
Px = Price of commodity X
X = Units of commodity X purchased
Py = Price of commodity Y
Y = Units of commodity Y purchased
In this question, Edmund's income is $48. Let C represent the units of punk rock video cassettes that he buys. Each one costs $6.
In addition, rather than spending on another commodity, he earns $24 per sack for accepting garbage. Let G represent the number of garbage sacks he accepts. Putting these values in the above equation, we have:
48 = 6C - 24G
Rearranging the equation, we have the final answer, which is:
6C - 24G = 48
