Suppose John have R1 800 to spend on two goods: shoes, and shirts and that the price of a pair of shoes is R120 and the price of shirt is R100. (i). Given total income and prices of two goods, how many pairs of shoes will John obtain if he decides to use all of his income on shoes and how many units of shirts will he afford if he decides to buy shirts only?What will happen to John’s budget line if the price of shoes (measured on horizontal axis rise from R120 to R180? Explain by stating numerical figures.

/in /by

Suppose John have R1 800 to spend on two goods: shoes, and shirts and
that the price of a pair of shoes is R120 and the price of shirt is
R100. (i). Given total income and prices of two goods, how many pairs
of shoes will John obtain if he decides to use all of his income on
shoes and how many units of shirts will he afford if he decides to buy
shirts only?What will happen to John’s budget line if the price of
shoes (measured on horizontal axis rise from R120 to R180? Explain by
stating numerical figures.

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