Exhibit 6-30 Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What is the current price of compact disks?
A)$1
B)$5
C)$10
D)$60
E)unable to determine

Question

Exhibit 6-30  Consider Exhibit 6-30.Assume that you have $600 to spend on books and compact disks.What is the current price of compact disks?
A)$1 
B)$5 
C)$10 
D)$60 
E)unable to determine

Quizplus · Accepted Answer

From Exhibit 6-30, we can see that the budget line intersects the CD axis at $10. Therefore, the current price of compact disks is $10.