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

I = Q

where I = Total Income of the Consumer

P

Q

P

Q

EXAMPLE: Lets 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. Related Formulas:

I = Q

px=30,py=50,qx=70,qy=30

↑Back to Top of Lesson↑ Report a problem with this lesson

Tags: budget, price, quantity