Larry spends all his $800 monthly income on pizza and petrol. The price of pizza is $4 a slice, and the price of petrol is $2 per litre. If Larry buys 150 slices of pizza per month, his budget constraint will allow him to buy _______ litres of petrol per month.

Question

Quizplus · Accepted Answer

Larry spends $600 on pizza (150 slices * $4 per slice) and has $200 left for petrol. He can buy 100 litres of petrol (200 / 2).

Larry Spends All His $800 Monthly Income on Pizza and Petrol