Question

Ted has 600 dollar a week to spend on clothing and food the price of clothing is 30 dollar and price of food 5 dollar .What is the ted budget line limitation for the two goods?

Answer 1

Answer:

The budget line for the two goods is $30 × Clothing + $5 × Food = $600

Explanation:

As Ted has only $600 amount of money available with him to spend the money for getting the food as well as clothing in this week. And the food cost him $5, clothing costs him $30. Therefore, in order to have both items in the amount of $600, the budget line would be:

$30 × Clothing + $5 × Food = $600