OIIECTION A\ Figure 3.2.1\ Refer to Figure 3.2.1 above. Let

I=

income,

P_(F)

the price of food, and

P_(C)

the price of clothing. The vertical intercept of the budget line equals 40 , which is equivalent to:\

(/)/(P_(F))

.\ I.\

^(-P)P_(PF)

\

||P_(C)

.

QUESTION 4 Figure 3.2.1 Refer to Figure 3.2.1 above. Let I= income, PF the price of food, and PC the price of clothing. The vertical intercept of the budget line equals 40 , which is equivalent to: PF. I. PCPF IIPC