Monica consumes two goods,iced tea and spaghetti.The price of iced tea is $2 per bottle.Her income is $500 per month.She spends all her income each month.She purchases 50 bottles of iced tea and 100 servings of spaghetti.What is the price of a serving of spaghetti?

Question

Quizplus · Accepted Answer

The total amount spent on iced tea is 50 * $2 = $100. The remaining amount spent on spaghetti is $500 - $100 = $400. Since she purchases 100 servings of spaghetti, the price of a serving of spaghetti is $400 / 100 = $4.

Monica Consumes Two Goods,iced Tea and Spaghetti