Suppose movie theater tickets are on the vertical axis and books on the horizontal axis.You have a budget allowance of $100,and the price of movie theater passes is $10 and the price of books is $25 each.What is the vertical intercept of your budget constraint?
A)1
B)4
C)10
D)100

Question

Quizplus · Accepted Answer

The vertical intercept of the budget constraint represents the maximum number of movie theater tickets that can be purchased if all of the budget is spent on them. Since the budget is $100 and each movie theater pass costs $10, the maximum number of passes that can be purchased is $100 / $10 = 10. Therefore, the vertical intercept is 10.

To find the best choice(s), we need to look for the point(s) that maximizes our utility within the budget constraint. This will depend on our preferences and cannot be determined solely from the given information.

Suppose Movie Theater Tickets Are on the Vertical Axis and Books