12. Suppose Billy is always in a hurry and lives on burritos and soda. Bill has $150 per month to spend on these two goods. The price of burritos is $1.50 each while sodas cost $1.25 each. Which of the budget constraints depicted to the right is Billy's?

   Remember that the endpoints of a budget constraint are the number of units of that good that could be purchased if all income were spent that way. We know that Billy has $150 and that soda costs $1.25 each so we just need to compute how many sodas he could buy with $150. The answer is $150 ÷ $1.25 = 120 or budget (c).

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