Edmund Stench consumes two commodities, namely garbage and punk rock video cassettes. He doesn’t actually eat the former but keeps it in his backyard where it is eaten by billy goats and assorted vermin. The reason that he accepts the garbage is that people pay him $2 per sack for taking it. Edmund can accept as much garbage as he wishes at that price. He has no other source of income. Video cassettes cost him $6 each.
(a) If Edmund accepts zero sacks of garbage, how many video cassettes can he buy?
(b) If he accepts 15 sacks of garbage, how many video cassettes can he buy?
(c) Write down an equation for his budget line.
(d) Draw Edmund’s budget line and shade in his budget set.