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10 August, 11:49

Edmund must pay $6 each for punk rock video cassettes,?. Edmund is paid $24 per sack for accepting garbage,?, and his relatives send him an allowance of $48. Write an equation for Edmund's budget line.

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  1. 10 August, 12:44
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    The equation for Edmund's budget line is 6C - 24G = 48

    Explanation:

    A budget line shows all possible combinations of two commodities that a consumer can buy at a given income level and at given market prices of commodities. The equation of the budget line is as follows.

    M = (Px). X + {Py). Y where

    M = Income

    Px = Price of commodity X

    X = Units of commodity X purchased

    Py = Price of commodity Y

    Y = Units of commodity Y purchased

    In this question, Edmund's income is $48. Let C represent the units of punk rock video cassettes that he buys. Each one costs $6.

    In addition, rather than spending on another commodity, he earns $24 per sack for accepting garbage. Let G represent the number of garbage sacks he accepts. Putting these values in the above equation, we have:

    48 = 6C - 24G

    Rearranging the equation, we have the final answer, which is:

    6C - 24G = 48
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