Refer to Exhibit 1. Peter spends his income of R700 on two goods - shifts and food. The table shows the utility that Peter derives from these two commodities. Peter's budget equation is:

Question

5000S + 800F = 700


700S + 800f = 5000


200S + 100F = 700


25S + 8F = 700

Answer 1

The correct budget equation is:

700 = 5000S + 800F