If a consumer has $30 to spend on apples and bananas, where on the apple axis would the consumer's budget line intersect if the price of apples is $3 a kilogram?
A) 10 kilograms
B) 30 kilograms
C) 3 kilograms
D) Zero kilograms
E) It is impossible to determine with the given information.

Question

Quizplus · Accepted Answer

If the consumer spends all $30 on apples, at $3 a kilogram, they could buy 10 kilograms of apples ($30 / $3 per kilogram = 10 kilograms). This is where the budget line would intersect the apple axis.

If a Consumer Has $30 to Spend on Apples and Bananas