Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF = $5 and PC = $20. (a) The maximum amount of food that Maria can consume is _____. (b) The maximum number of pieces of clothing that Maria can consume is ____. (c) Therefore the intercepts of Maria’s budget line are _____ F and _____ C.
Maria spends all of her income of $2,000 on food (F) and clothing (C). The prices per unit are: PF = $5 and PC = $20.
(a) The maximum amount of food that Maria can consume is _____.
(b) The maximum number of pieces of clothing that Maria can consume is ____.
(c) Therefore the intercepts of Maria’s budget line are _____ F and _____ C.
(d) Graph Maria’s budget line, with F on the vertical axis and C on the horizontal axis.
(e) Maria (can, cannot) __________ afford to buy a combination of 200 F and 60 C because this combination of goods is located (outside, inside, on) __________ her
budget line.
(f) The slope of this budget line is _________.
(g) The
h) If Maria’s income rises to $3,000, the new intercepts of her budget line are _____ F and _____ C.
(i) Graph this new budget line on your graph for item (d) above.
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