Amy has $16 a week to spend on coffee and cake. The price of coffee is $2 a cup, and the price of cake is $4 a slice. Calculate the equation for Amy's budget line. (Qs is the quantity of cake slices and Qc is the quantity of coffee.) ..... O A. Qc = 8 + 0.5Qs O B. Qc = 0.25 -2.00QS OC. Qc = 32 + 16QS O D. Qc = 8-2.00QS

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 8SQ
icon
Related questions
Question
Amy has $16 a week to spend on coffee and cake. The price of coffee is $2 a cup, and the price of cake is $4 a slice.
Calculate the equation for Amy's budget line.
(Qg is the quantity of cake slices and Q, is the quantity of coffee.)
.....
O A. Qc = 8 + 0.5Qs
O B. Qc = 0.25 - 2.00QS
OC. Qc= 32 + 16QS
O D. Qc= 8-2.00QS
Transcribed Image Text:Amy has $16 a week to spend on coffee and cake. The price of coffee is $2 a cup, and the price of cake is $4 a slice. Calculate the equation for Amy's budget line. (Qg is the quantity of cake slices and Q, is the quantity of coffee.) ..... O A. Qc = 8 + 0.5Qs O B. Qc = 0.25 - 2.00QS OC. Qc= 32 + 16QS O D. Qc= 8-2.00QS
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Budget Constraint
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
Economics For Today
Economics For Today
Economics
ISBN:
9781337613040
Author:
Tucker
Publisher:
Cengage Learning
Principles of Microeconomics
Principles of Microeconomics
Economics
ISBN:
9781305156050
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Microeconomics (MindTap Course List)
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:
9781305971493
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc