Faruq spends all of his income on tacos and milkshakes.His income is $100,the price of tacos is $10,and the price of milkshakes is $2.Put tacos on the horizontal axis and milkshakes on the vertical axis.The horizontal intercept for Faruq's budget line is _____ tacos.
A)50
B)10
C)5
D)100

Question

Quizplus · Accepted Answer

The equation for Faruq's budget line is: 
10T + 2M = 100
Solve for T when M = 0:
10T + 2(0) = 100
T = 10
So the horizontal intercept is 10 tacos.

The best choice(s) is/are determined by finding the point(s) on the budget line that maximizes Faruq's satisfaction. This involves finding the point(s) where the budget line is tangent to an indifference curve. Without information on Faruq's preferences, we cannot determine the best choice(s).

Faruq Spends All of His Income on Tacos and Milkshakes