174k views
3 votes
Ana enjoys drinking coffee and soda. Both cost $1 each, and she

allocates $100 to spend on these beverages alone each month. On the
following graph, BC1 is Ana's budget constraint for consumption of
c

1 Answer

3 votes

Final answer:

The subject of this question is Mathematics, specifically related to budget constraints and consumer spending. In the given scenario, Ana has a budget of $100 to spend on coffee and soda. The budget constraint graphically represents the different combinations of coffee and soda that Ana can purchase within her budget.

Step-by-step explanation:

The subject of this question is Mathematics, specifically related to budget constraints and consumer spending.

In the given scenario, Ana has a budget of $100 to spend on coffee and soda. Both coffee and soda cost $1 each. The budget constraint graphically represents the different combinations of coffee and soda that Ana can purchase within her budget.

The budget constraint line shows that Ana can buy a maximum of 100 coffee and soda combined. Any point on the budget constraint line or inside it represents a combination of coffee and soda that Ana can afford. For example, she can buy 50 coffees and 50 sodas or 80 coffees and 20 sodas, and so on.

User Saeed Rohani
by
8.1k points