As you may know, Mungoites each have two left feet and one right foot.Their preferences for left and right shoes display perfect complementarity.Mungoites find shoes useful only in trios of two lefts and a right.The price of each type of shoe is $10 a shoe, and Mungoites consume nothing other than shoes.A Mungoite's Engel curve for right shoes has the equation
A)R = m/30.
B)R = m - 10.
C)R = 2m.
D)R = 10m.
E)R = m/10.

Question

Quizplus · Accepted Answer

Given the information, for every trio of shoes (2 left, 1 right), a Mungoite spends $30 ($10 per shoe). Since they consume nothing else, their entire budget (m) goes to buying these trios. The Engel curve for right shoes shows the relationship between income and the quantity of right shoes purchased. Since each right shoe is part of a trio that costs $30, the quantity of right shoes a Mungoite can afford is m/30, where m is their income.

As You May Know, Mungoites Each Have Two Left Feet