if you have an income of $18 to spend, if commodity 1 costs $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)4x₁ + 10x₂ = 19. C)x₁ + 3x₂= 6. D)(x₁ + x₂)/12 = 18. E)12(x₁ + x₂) = 18.

Question

Quizplus · Accepted Answer

The budget line equation is derived from the total income and the prices of the commodities: $3x_1 + $9x_2 = $18. Simplifying this equation by dividing all terms by 3 gives: $x_1 + 3x_2 = 6.

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