Joe's income is $500, the price of food (f, y-axis) is $2 per unit, and the price of shelter (s, x-axis)is $100. which of the following represents his budget constraint?

a. 500 = 2f + 100s
b. f = 250 - 50s
c. s = 5 - .02f
d. all of the above.

D. All of the above.

Explanation:

We can model his budget constraint by the following first order function.

2F + 100S = 500

In which F is the number of food items that he buys and S is the number of shelters that he pays.

So A. is correct.

If we want to write this equation with F as a function of S, it is also possible:

2F + 100S = 500

2F = 500 - 100S

F = 250 - 50s

So B. is also correct

Writing with S as function of F

2F + 100S = 500

100S = 500 - 2F

S = 5 - 0.02F

So C. is also correct

The correct answer is:

D. All of the above.

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