Chuck spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The vertical intercept for Chuck's budget line is _____ milkshakes.

Question

Quizplus · Accepted Answer

The vertical intercept occurs when Chuck spends all of his income on milkshakes. Since each milkshake costs $2 and his income is $100, he can buy $100/$2 = 50 milkshakes.

Chuck Spends All of His Income on Tacos and Milkshakes