Khumo earns P500 per week. She spends her entire income on two goods: movies and bottles of wine. the price of a movie is P10 and the price of a bottle of wine is P10. Draw Khumo's budget line and shade in her budget set
To draw Khumo's budget line, we need to find the maximum amount of movies and bottles of wine she can buy with her income.
Let's assume Khumo spends all her income on movies. The maximum number of movies she can buy is given by:
Maximum movies = Income / Price of a movie
Maximum movies = P500 / P10
Maximum movies = 50 movies
Let's assume Khumo spends all her income on bottles of wine. The maximum number of bottles of wine she can buy is given by:
Maximum bottles of wine = Income / Price of a bottle of wine
Maximum bottles of wine = P500 / P10
Maximum bottles of wine = 50 bottles of wine
Now, we can plot Khumo's budget line on a graph. The x-axis represents the number of movies and the y-axis represents the number of bottles of wine.
On the graph, plot the points (0, 50) and (50, 0). Connect these two points with a line to represent Khumo's budget line.
To shade in Khumo's budget set, we need to consider all possible combinations of movies and bottles of wine that Khumo can afford with her income.
The shaded area under the budget line and above the x-axis represents Khumo's budget set, which includes all possible combinations of movies and bottles of wine that she can afford to buy with her income.
To draw Khumo's budget line, we need to understand her income and the prices of the goods she is purchasing.
Given:
- Khumo earns P500 per week
- The price of a movie is P10
- The price of a bottle of wine is P10
Let's assume that Khumo spends her entire income on movies (M) and bottles of wine (W).
To find the maximum quantity of movies (M) that Khumo can buy, we divide her income by the price of movies:
Maximum quantity of movies (M) = P500 / P10 = 50 movies
To find the maximum quantity of bottles of wine (W) that Khumo can buy, we divide her income by the price of bottles of wine:
Maximum quantity of bottles of wine (W) = P500 / P10 = 50 bottles of wine
Now, let's plot these points on a graph:
- On the horizontal axis, let's represent the quantity of movies (M)
- On the vertical axis, let's represent the quantity of bottles of wine (W)
The points are:
Point A: (50, 0) - This represents when Khumo spends her entire income on movies and does not buy any bottles of wine.
Point B: (0, 50) - This represents when Khumo spends her entire income on bottles of wine and does not buy any movies.
Now, let's connect these two points to form the budget line.
To shade in Khumo's budget set, we fill in the area below the budget line, representing the combinations of movies and bottles of wine that Khumo can afford with her income of P500.
I apologize, but as an AI text-based bot, I am unable to generate visual images. Please use the provided information to draw Khumo's budget line and shade in her budget set on a graph manually.
To draw Khumo's budget line and shade in her budget set, we need to understand her budget constraint and the different combinations of movies and bottles of wine she can afford with her weekly income of P500.
The budget constraint or line represents all the combinations of movies and bottles of wine that Khumo can purchase given her limited income. It shows the trade-off between the two goods and what is feasible for her to buy.
To calculate the number of movies (M) and bottles of wine (W) Khumo can afford, we first need to determine the maximum quantity of each good she can purchase with her budget constraint.
The price of a movie is P10, so the maximum number of movies she can buy is 500/10 = 50 movies.
Similarly, the price of a bottle of wine is also P10, so the maximum number of bottles of wine she can buy is also 500/10 = 50 bottles.
Now, we can plot these quantities on a graph. Let's make the horizontal axis represent the number of movies (M) and the vertical axis represent the number of bottles of wine (W).
First, draw a straight line connecting the points (0,50) and (50,0). This line represents the maximum number of movies and bottles of wine Khumo can buy if she spends her entire income on one good (movies or bottles of wine).
Next, we need to shade in her budget set. The budget set is the area below or on the line, representing all the combinations of movies and bottles of wine that are affordable for Khumo.
Shade in the space below the line from the origin (0,0) to the point where the line intersects the horizontal and vertical axes.
The shaded area represents Khumo's budget set or the combinations of movies and bottles of wine she can afford with her weekly income.
Note: The slope of the budget line represents the ratio of the prices of movies and bottles of wine. In this case, both have the same price, so the slope is 1, and the budget line is a straight diagonal line.