Joe has $36 to spend on burgers B and fries F. The prices are $3 and $4, respectively. (a) What is the budget constraint? (b) How many more burgers does an additional dollar spent on B buy? How many more fries does an additional dollar spent on F buy?
a. Budget constraint: 3B+4F=36; (b) One more dollar spent on B buys 1.33 more burgers; One more dollar spent on F buys 1.5 more fries.
b. Budget constraint: 4B+3F=36; (b) One more dollar spent on B buys 1.5 more burgers; One more dollar spent on F buys 1.33 more fries.
c. Budget constraint: 36B+36F=1; (b) One more dollar spent on B buys 12 more burgers; One more dollar spent on F buys 9 more fries.
d. Budget constraint: 4B+3F=36; (b) One more dollar spent on B buys 1 more burger; One more dollar spent on F buys 1 more fry.