if you have an income of $18 to spend, if commodity 1 cost $3 per unit, and if commodity 2 costs $9 per unit, then the equation for your budget line can be written A)x₁/3 + x₂/9 = 18. B)(x₁ + x₂)/12 = 18. C)x₁ + 3x₂ = 6. D)4x₁ + 10x₂ = 19. E)12(x₁ +x₂) = 18.

Question

Quizplus · Accepted Answer

The budget line equation is derived from the total income divided by the price of each commodity. Here, $3x_1 + $9x_2 = $18 simplifies to x_1 + 3x_2 = 6.

If You Have an Income of $18 to Spend, If