Question

Analyze the following budget, with an income of $600, to determine how much can be spent on food for the month.

a. $210 can be spent on food.
b. $145 can be spent on food.
c. $80 can be spent on food.
d. $260 can be spent on food.

Answer 1

The correct amount that can be spent on food for the month with a given budget of $600 is $260.

Step-by-step explanation:

The budget constraint shows different trade-offs based on the amount spent on food and housing. Let's analyze the given budget with an income of $600 to determine how much can be spent on food for the month.

To calculate how much can be spent on food, we need to evaluate each option mentioned:

1. At point A, no meals can be eaten, so $0 can be spent on food.
2. At point B, one meal can be eaten each day for the month, which is 30 meals. If each meal costs $2, then $60 can be spent on food.
3. At point C, two meals can be eaten each day. So for 30 days, it would be 60 meals. At $2 per meal, $120 can be spent on food.
4. At point D, three meals can be eaten each day, resulting in 90 meals for the month. It would require $180 to spend on food with each meal costing $2.

From the given options, the correct answer is d. $260 can be spent on food for the month.