Click
here to visit the calculator or click the Calculator Folder Tab above
If you have two goods, x and y, each with a respective price, which follows the
budget line, you can use this calculator to determine
any
one of the
five budget line items with the equation below.
I = Q
x x P
x + Q
y x P
y
where I = Total Income of the Consumer
P
x = Price of item x.
Q
x = Quantity of item x
P
y = Price of item y.
Q
y = Quantity of item y
EXAMPLE: Let's say you want to figure out how much income you need to buy 2 shirts at 5
dollars each and 3 pants at 6 dollars each. You would press the Calculate
Income. Then you would enter 2 for quantity of x, 5 for price of x, 3 for
quantity of y, and 6 for price of y and Press Calculate. Your answer is 28.
