If You Have an Income of $40 to Spend, Commodity

question 53

Multiple Choice

If you have an income of $40 to spend, commodity 1 costs $4 per unit, and commodity 2 costs $8 per unit, then the equation for your budget line can be written

• A)x₁/4 + x₂/8 = 40.
• B)(x₁ + x₂)/12 = 40.
• C)x₁ + 2x₂ = 10.
• D)5x₁ +9x₂ = 41.
• E)12(x₁ + x₂) = 40.

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