Assume that the quantity of X is measured on the horizontal axis,and the quantity of Y is measured on the vertical axis.Assume that the price of X is $3 and the price of Y is $6.If Amanda has $90 to spend on X and Y,then
A)she can buy,at most,30 units of good X.
B)her budget line has a slope of -2.
C)her budget line has a slope of −3.
D)she can buy,at most,15 units of good X.

Question

Quizplus · Accepted Answer

Using the prices and budget, we can set up the following equation for the budget line:
3X + 6Y = 90
Solving for Y, we get:
Y = (90 - 3X)/6
This equation represents the maximum amount of good Y that Amanda can purchase for any amount of X. To find the maximum amount of X that Amanda can purchase, we want to find the point on the budget line where Y is zero. Setting Y to zero in the equation above, we get:
0 = (90 - 3X)/6
Multiplying both sides by 6, we get:
0 = 90 - 3X
Solving for X, we get:
X = 30
Therefore, Amanda can buy at most 30 units of good X.

Assume That the Quantity of X Is Measured on the Horizontal