Suppose that Julia receives a $30 gift card for the local coffee shop, where she only buys lattes and muffins. If the price of a latte is $3 and the price of a muffin is $2, then we can conclude that Julia
A)should only buy muffins.
B)should only buy lattes.
C)can buy 10 lattes or 15 muffins if she chooses to buy only one of the two goods.
D)can buy 10 lattes and 15 muffins with her $30 gift card.

Question

Quizplus · Accepted Answer

With $30, Julia can buy 10 lattes ($3 each) or 15 muffins ($2 each), demonstrating the concept of budget constraints and choice in economics. Choices A, B, and D suggest specific spending strategies or misunderstand the total purchasing power of the gift card.

Suppose That Julia Receives a $30 Gift Card for the Local