Answer:
The correct answer is 10.
Explanation:
Faruq spends all of his income ($100) on tacos and milkshakes.
Price of tacos is $10, and the price of milkshakes is $2.
Let Faruq buy x number of tacos (horizontal axis) and y number of milkshakes (vertical axis).
Total expenditure of Faruq is given by 10 × x + 2 × y.
Since Faruq does not save anything, therefore his expenditure is equal to his income.
Thus his budget line is given by 10 × x + 2 × y = 100.
To calculate the horizontal intercept for Faruq's budget line we consider y = 0, i.e. we want to calculate how many tacos Faruq would buy when he does not buy any amount of milkshakes.
Thus taking y = 0, we get
10 × x = 100
⇒ x = 10
Thus the horizontal intercept for Faruq's budget line is 10.