Question

Imagine that I have given you $60 to spend on 2 products. Using the information that you were asked to collect at the end of class on 9/11, please create your own budget constraint showing how you would spend that money. Show the budget constraint in 3 forms:

A. Tabular form
B. Graphical form
C. Mathematical equation form

Answer 1

To create a budget constraint with a $60 budget for 2 products, assign prices to each product and calculate the quantity that can be purchased. The budget constraint can be represented in tabular, graphical, and mathematical equation forms.

Step-by-step explanation:

To create a budget constraint with a $60 budget for 2 products, we can assign different prices to each product and calculate the quantity that can be purchased within the budget. Let's assume the first product costs $20 and the second product costs $10.

Tabular Form:

ProductPriceQuantityProduct 1$203Product 2$106

Graphical Form:

Mathematical Equation Form:

The budget constraint equation can be written as:
20x + 10y = 60
where x is the quantity of Product 1 and y is the quantity of Product 2.