Tonya's budget constraint for gallons of gasoline (G)and shirts (S)each month can be expressed by the equation G = 100 - 2S,where G is the number of gallons of gasoline she buys and S is the total number of shirts she buys.Assume that she spends her entire budget each month.If the price of shirts is $10,the price of gasoline is _____ per gallon,and the total amount of income spent on both shirts and gasoline each month is _____.
A)$5;$500
B)$2;$100
C)$1;$500
D)$2;$1,000

Question

Quizplus · Accepted Answer

The price of gasoline can be determined by rearranging the budget constraint equation to solve for the price per unit of each good. Given that the equation is G = 100 - 2S, and knowing that the price of shirts is $10, we can deduce that for every shirt bought (decreasing G by 2 units), $20 is spent (since 2 shirts * $10/shirt = $20). This implies that the "2" in the equation represents $20 spent on shirts, which corresponds to a decrease of 2 gallons of gasoline. Therefore, $20 spent results in a decrease of 2 gallons of gasoline, indicating that the price of gasoline is $10 per gallon. However, to match the options provided and the correct interpretation of the budget constraint, we consider the total budget. The total budget is not directly given, but since the price of gasoline is inferred from the relationship between the number of shirts and gallons of gasoline, we look for an option that correctly reflects the budget given the prices of shirts and the implied quantity relationship. The correct interpretation involves understanding the budget constraint in the context of the prices and quantities involved, leading to the conclusion that the total budget and the price of gasoline must align with the equation's implications. The correct option should reflect the total amount Tonya can spend on gasoline and shirts together, considering the prices of both and how they fit into the budget equation provided.

Tonya's Budget Constraint for Gallons of Gasoline (G)and Shirts (S)each