Joe's income is $500,the price of food (F)is $2 per unit,and the price of shelter (S)is $100.Which of the following represents his budget constraint?

Question

Quizplus · Accepted Answer

The correct budget constraint equation is 500 = 2F + 100S, where 2F represents the total cost of food (at $2 per unit) and 100S represents the total cost of shelter (at $100 per unit). This equation correctly shows how Joe's income ($500) is allocated between food and shelter.

Joe's Income Is $500,the Price of Food (F)is $2 Per