Johnís income is $100 a week, CD is $10 each and price of a book is $20. Johnís utility is represented by figure 1 below. (DO NOT assume U=XY)
a. What is the equation for Johnís budget line?
b. Graph Johnís budget line
Here is my work:
10Qcd + 200b = 100
Qcd + 200b / 10cd * Qqb = Y / 10cd
Qcd = y/10cd - 200b/10cd * Qb
100/10 cd - 200/10 cd * Qb
Qcd = 10 - 20Qb
Where do I go from here to find out the budget equation and the coordinates to graph the budget line?