Bill consumes two goods: iced tea and spaghetti. The price of iced tea is $2 per bottle, and the price of spaghetti is $8 per serving. His income is $1,000 per month. He spends all of his income each month. He purchases 200 bottles of iced tea. How many servings of spaghetti does he purchase?
A)125
B)75
C)50
D)10

Question

Quizplus · Accepted Answer

We can start by using the budget constraint equation: 
2(200) + 8x = 1000, where x is the number of servings of spaghetti.
Simplifying this equation, we get: 
400 + 8x = 1000 
8x = 600 
x = 75 
Therefore, Bill purchases 75 servings of spaghetti. Option B is the correct answer.

Bill Consumes Two Goods: Iced Tea and Spaghetti