A consumer's budget line for food (F)and shelter (S)is represented as F = 250 - 5S.If this consumer's income increases by $10 and consumption of shelter remains unchanged,how many more units of shelter can be purchased at most?
A)10
B)20
C)50
D)2

Question

Quizplus · Accepted Answer

The budget line equation is F = 250 - 5S. If the consumer's income increases by $10, the new budget line equation becomes F = 260 - 5S. Since the consumption of shelter remains unchanged, the consumer can purchase at most 2 more units of shelter (260 - 250) / 5 = 2.

A Consumer's Budget Line for Food (F)and Shelter (S)is Represented