Beth has $20 to spend on apples and bananas.Apples cost $3 per kilogram and bananas cost $2 per kilogram.Using A to represent the quantity of apples and B to represent the quantity of bananas,Beth's budget constraint can be written as

Question

Quizplus · Accepted Answer

If Beth spends all her money on apples and bananas, then her total expenditure (in dollars) will be given by 3A + 2B, since each kilogram of apples costs $3 and each kilogram of bananas costs $2. But this total expenditure cannot exceed $20 since that is all the money she has. Hence, we can write the budget constraint as 3A + 2B ≤ 20. Since we want to use all of Beth's money (i.e., spend $20) and buy some combination of apples and bananas, we cannot have strict inequality. Hence, we write this as the equation 3A + 2B = 20.

Beth Has $20 to Spend on Apples and Bananas