Shaniq consumes only magazine and CDs. Her income equals $60 per month. CDs are $12 each and magazines are $5 each. What is the equation for her budget line?

Question

Quizplus · Accepted Answer

The budget line equation is typically in the form of Y = mX + b, where Y is the total income, X is the quantity of product 1 (CDs in this case), m is the price of product 1, and b is the total income divided by the price of product 2 (magazines in this case). So, the equation should be: $60 = $12Q_CD + $5Q_m

Shaniq Consumes Only Magazine and CDs