Given Budget Line Values:
Px = 30, Py = 50, Qx = 70, Qy = 30
Calculate Income
Budget Line Equation:
I = Px x Qx + 50 x Py x Qy
where:
I = Income
30 = Price of item x
70 = Quantity of Item x
50 = Price of item y
30 = Quantity of Item y
Plug in values
I = 30 x 70 + 50 x 30
I = 2100 + 1500
I = 3600
With a Total Income of 3600
you can buy 70 items of x at a price of 30
and 30 items of y at a price of 50
What is the Answer?
I = 3600
How does the Budget Line Equation Calculator work?
Free Budget Line Equation Calculator - Solves for any one of the 5 items in the standard budget line equation:
Income (I)
Quantity of x = Qx
Quantity of y = Qy
Price of x = Px
Price of y = Py
This calculator has 5 inputs.
Income (I)
Quantity of x = Qx
Quantity of y = Qy
Price of x = Px
Price of y = Py
This calculator has 5 inputs.
What 1 formula is used for the Budget Line Equation Calculator?
What 5 concepts are covered in the Budget Line Equation Calculator?
- budget
- an estimate of income and expenditure for a set period of time. In economics, a budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income.
- budget line equation
- Equation showing all the combinations of goods and services that a consumer may purchase given current prices within his or her given income
I = PxQx + PyQy where I = Income, P denotes price, Q denotes quantity - equation
- a statement declaring two mathematical expressions are equal
- price
- the amount of money expected, required, or given in payment for something
- quantity
- amount of something
Example calculations for the Budget Line Equation Calculator
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