A consumer has an income of $32,563. He consumes only two goods, Pizza and soda.

Question

A consumer has an income of $32,563. He consumes only two goods, Pizza and soda. Pizza cost $2.33 each and soda cost $4.08. If pizza is on the vertical axis, what is the intercept on the vertical axis? (Do not forget to include the sign and round two decimal places) A consumer has an income of $32,563. He consumes only two goods, Pizza and soda. Pizza cost $2.33 each and soda cost $4.08. If pizza is on the vertical axis, what is the intercept on the vertical axis? (Do not forget to include the sign and round two decimal places)

Explanation / Answer

The consumer has income of $32,563 and consumes only two goods, which are pizza and soda. To get the intercept of pizza on the vertical axis we have to assume that the consumer is only consuming pizza, the number of pizza we will get after dividing his total income with the price of pizza would be the vertical intercept.

Vertical intercept = 32563/2.33 = 13975.53648068669527 = 13975.54 approximately

Answer = 13975.54 units.

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