A farmer is given $100 to buy 100 farm animals a cow cost $1.00 a sheep cost $.50 and a horse cost $1.00 how can the farm spend the money without going over

Few animal combinations of 3 animals given income & prices : - Only one of cow, horse, or ship bought; less than 100, 200, 200 respectively.

Step-by-step explanation:

Budget Set is the combination of goods, which can be afforded by a consumer, given money income & prices.

Given : Budget Income = 100

Cow Price (C) = 1; Sheep Cost (S) = 0.5; Horse Cost (H) = 0.5

Maximum number of either cow, or sheep, or horse only that Farmer can buy with given prices & budget income (not buying the other ones) : -

C = 100 / 1 = 100 S = 100 / 0.5 = 200 H = 100 / 0.5 = 200

So, some animal combination, that farmer can buy with available income budget & given prices : -

(C, 0, 0); where C < 100 (0, S, 0); where S < 200 (0, 0, H); where H < 200