Suppose a consumer has an income equal to I which he/she spends on either food or clothing. The price of food is given by P_f and the price of clothing is given by P_c. If the consumer spends all of his/her income on clothing, the expression for the number of units of clothing he/she buys is A) I/P_f B) I x P_c C) I/P_c D) I

Question

Quizplus · Accepted Answer

The number of units of clothing the consumer buys is simply the ratio of the consumer's income to the price of clothing. Therefore, the expression is I/P_c.

Suppose a Consumer Has an Income Equal to I Which