Budget constraints, Microeconomics

Assignment Help:

Budget Constraints 

* The Budget Line

- The budget line indicates all the combinations of 2 commodities for which total money spent equals the total income.

* The Budget Line

- Let F equal the amount of food which is purchased, and C is amount of clothing.

- Price of food = Pf and price of clothing = Pc

- Pf F is the amount of money spent on food, and PcC is amount of money spent on clothing.

* The budget line then can be given by: 

1088_budget constraints.png


Related Discussions:- Budget constraints

What do you meant by hoarding, Q. What do you meant by Hoarding? A situ...

Q. What do you meant by Hoarding? A situation in that companies, financial investorsor individual consumers choose to hold hoards of cash or other liquid assets, instead of spe

Macro economics, At what point is the Fed likely to raise interest rates fo...

At what point is the Fed likely to raise interest rates for the first time? How large are the first couple of hikes likely to be? (hints: conditional on unemployment or gdp growth

Long run eq, The raspberry growing industry is a perfectly competitive indu...

The raspberry growing industry is a perfectly competitive industry. The firms in the industry have a U-shaped LAC, minimum average cost is $8 and the minimum efficient scale is 4 u

Evironmental issues and elasticity, looking for information to complete ess...

looking for information to complete essay, info looking for What is elasticity and its calculations for the price of a lap top, that increases by 20% and there is a 40% drop in qua

Markets, What are markets types of markets

What are markets types of markets

What is corporation, Q. What is Corporation? A corporation is a form of...

Q. What is Corporation? A corporation is a form of business established as an independent legal entity, separate from individuals who own it. A main benefit, for owners, of thi

Consumer surplus, what is the application of consumer surplus

what is the application of consumer surplus

Should the Government Provide National Health Insurance, What is meant by t...

What is meant by the multifaceted nature of the U.S. health care system? How is health care financed in the U.S.? What is the advantage and disadvantage of the U.S. multi-payer sys

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd