Final answer:
To determine producer supply at a price of $2, the supply equation must be used with the price plugged in. Budget constraints like those faced by Jeremy and Alphonso involve using budget equations or graphical representations to understand their purchasing options.The correct option is b) 15p + 12(p - 5).
Step-by-step explanation:
The student's question involves finding out how much producers will supply when the price is $2 each, given that consumers will purchase 12. To determine this, we need to use the supplied supply equation and plug in the price of $2 to find out the quantity that producers will supply at that price point. Similar calculations can be applied to budget constraints involving Jeremy's scenario with round trips and phone minutes, or Alphonso's choices between buying burgers and bus tickets.
For Jeremy, the budget line equation would look like this:
Budget = PRTX QRT + PPC × QPC, where PRT is the price of round trips, QRT is the quantity of round trips, PPC is the price per phone call, and QPC is the quantity of phone calls.
In Alphonso's case, he has to choose between burgers and bus tickets, with the vertical axis representing burger purchases and the horizontal axis representing bus ticket purchases. Given his budget options, Alphonso could afford 5 burgers per week or 20 bus tickets per week, but not both, this is a graphical representation of the budget constraint.The correct option is b) 15p + 12(p - 5).