every year, antoni hosts a holiday party for his friends. his party budget is $200. antoni spends his budget on food platters that cost $25 each and on entertainment, which costs $50 per hour.

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12-10-2021
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every year, antoni hosts a holiday party for his friends. his party budget is $200. antoni spends his budget on food platters that cost $25 each and on entertainment, which costs $50 per hour.

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topeadeniran2 topeadeniran2 · Answer 1 · 2021-10-20T11:36:49+02:00

The budget constraint of Antoni based on the information is 25f + 50e = 200

The budget constraint simply means a boundary of the opportunity cost. It represents all the combinations of goods that a person will buy at a price based on the income that the person has.

Based on the information given,

Income = $200

Cost of food platters = $25 each

Cost of entertainment = $50 per hour

Therefore, the budget constraint based on the above will be 25f + 50e = 200 where f = food platters and e = entertainment.

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