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Rumi has $100 and is deciding how to spend it on bread and wine. The price of bread is $2 and the price of wine
"Rumi has $100 and is deciding how to spend it on bread and wine. The price of bread is $2 and the price of wine is $2. (Both goods are infinitely divisible.)
Write down the budget constraint in terms ofax1+bx2=c, wherex1is quantity of bread andx2is quantity of wine. (Since this is a linear equation, you could scalea
,b, andcby an arbitrary scalar. In this and subsequent questions, just letcbe the total budget in dollars.)
a= ?
b= ?
c= ?
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