Deadly Serious, II, studying for his M.B.A., consumes only two goods, Wheaties and pens.Each pen costs $1.Each box of Wheaties costs $2 but has a free pen inside.Pens can be discarded at no cost.If we draw Serious's budget set with pens plotted on the horizontal axis, then his budget set will be bounded by two line segments with slopes
A)zero and -1.
B)zero and -2.
C)zero and -0.5.
D)zero and infinity.
E)zero and +2.

Question

Quizplus · Accepted Answer

The budget set is bounded by two line segments with slopes of zero and -1 because Serious can either spend all of his money on Wheaties, in which case he will have no pens, or he can spend all of his money on pens, in which case he will have no Wheaties.

Deadly Serious, II, Studying for His M