Edmund must pay $6 each for punk rock video cassettes.If Edmund is paid $18 per sack for accepting garbage and if his relatives send him an allowance of $108, then his budget line is described by the equation
A)6V + 18G = 108.
B)6V = 108 - G.
C)6V - 18G = 108.
D)6V = 18G.
E)None of the above.

Question

Quizplus · Accepted Answer

Let V be the number of punk rock video cassettes he buys and G be the number of sacks of garbage he accepts.
His total income is the sum of his earnings and his allowance:
Total income = 18G + 108.
His total expenditure on video cassettes is given by:
Expenditure = 6V.
His budget constraint is therefore:
18G + 108 = 6V,
which can be rearranged as:
6V - 18G = 108.
This is the equation described in choice C.

Edmund Must Pay $6 Each for Punk Rock Video Cassettes