# Suppose you are given a monthly income of $200 to spend on food while at college. Further,...

## Question:

Suppose you are given a monthly income of $200 to spend on food while at college. Further, suppose the price of a single-service pizza is $4 and the price of a deli sandwich is $2.

Which one of the following consumption combinations is possible given these prices and income?

a. 10 pizzas, 100 sandwiches.

b. 20 pizzas, 60 sandwiches.

c. 40 pizzas, 50 sandwiches.

d. 15 pizzas, 80 sandwiches.

## Budget Constraint

In economics, each consumer is assumed to have a fixed income, which is why each consumer is constrained in their consumption decisions. A budget constraint therefore shows what combinations of goods that a consumer can buy to exhaust her income.

## Answer and Explanation: 1

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- The correct answers are:
.__(b) 20 pizzas, 60 sandwiches and (c) 40 pizzas, 50 sandwiches.__

Let the number of single-service pizza consumed be...

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Chapter 1 / Lesson 6Learn what budget constraint is and view examples. Understand how to use the budget constraint formula and how to represent a budget constraint using a graph.

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