Asked by Jasmine Simpson on Jun 27, 2024
Verified
Hector has $1,000 a month to spend on clothing and food. The price of clothing is $50 and the price of food is $20. What is the equation for Hector's budget constraint?
A) Clothing + Food < $1,000
B) $50 × Clothing + $20 × Food ≥ $1,000
C) ($50 × Clothing) / ($20 × Food) = $1,000
D) $50 × Clothing + $20 × Food = $1,000
Budget Constraint
Represents the combinations of goods and services an individual can purchase given their income and the prices of those goods and services.
Clothing
Textile and fabric materials worn on the body, designed for reasons ranging from functional protection to cultural and personal expression.
Food
Any nutritious substance that people or animals eat or drink in order to maintain life and growth.
- Employ mathematical expressions to delineate fiscal constraints and determine optimal purchasing decisions for consumers.
Verified Answer
MC
Magda corneilleJun 28, 2024
Final Answer :
D
Explanation :
The correct equation for Hector's budget constraint is D) $50 × Clothing + $20 × Food = $1,000. This equation correctly represents the total amount Hector can spend on clothing and food, given their respective prices, without exceeding his budget of $1,000.
Learning Objectives
- Employ mathematical expressions to delineate fiscal constraints and determine optimal purchasing decisions for consumers.