If food is on the vertical axis and shelter on the horizontal axis, then the equation for the budget line can be expressed as
A)PsS + PfF = M.
B)PsF + PfS = M.
C)PsS + PfM = S.
D)M/Ps = S.

Question

Quizplus · Accepted Answer

The equation for the budget line is given by PsS + PfF = M, where Ps is the price of shelter, S is the quantity of shelter, Pf is the price of food, F is the quantity of food, and M is the total money available to spend. This equation represents the combinations of food and shelter that a consumer can purchase with their budget.

If Food Is on the Vertical Axis and Shelter on the Horizontal