Edmund must pay $6 each for punk rock video cassettes, V. If Edmund is paid $24 per sack for accepting garbage, G, and if his relatives send him an allowance of $48, then his budget line is described by the equation
A) 6V = 24G.
B) 6V + 24G = 48.
C) 6V - 24G = 48.
D) 6V = 48 - G.
E) None of the above.

Question

Quizplus · Accepted Answer

The equation representing Edmund's budget line must account for his income and expenses. His income consists of the $24 per sack he receives for accepting garbage and the $48 allowance from his relatives, for a total of 24G + 48. His expenses consist of the cost of the punk rock video cassettes, which he buys at $6 each, so his total expense is 6V. Setting these equal gives 6V = 24G + 48, which is equivalent to 6V - 24G = 48. Therefore, the correct answer is C.

Edmund Must Pay $6 Each for Punk Rock Video Cassettes