If a candy bar sells for 50 cents and video games are 25 cents each, the horizontal (candy)intercept of Ann's budget line is 12 and the vertical (video game)intercept of Ann's budget line is 24.Giving up one candy bar makes it possible for Ann to afford
A)2 fewer video games
B)half an additional video game
C)2 more video games
D)12 more video games
E)24 more video games

Question

Quizplus · Accepted Answer

To determine the slope of Ann's budget line, we can use the two intercepts given:

Slope = (change in y)/(change in x) = (24-0)/(0.5-0) = 48

This means that for every candy bar Ann gives up, she can buy 48 video games.

If Ann gives up one candy bar, she would have 11 left, which means she could afford:

11 candy bars * $0.50/candy bar = $5.50

With $5.50 left in her budget, she could afford:

$5.50 / $0.25/video game = 22 video games

However, if we assume that Ann wants to spend all of her money, she would give up one candy bar and buy 22 video games, rather than buying 24 video games and leaving $1.50 unspent.

Thus, giving up one candy bar makes it possible for Ann to afford 2 more video games, which corresponds to choice C.

If a Candy Bar Sells for 50 Cents and Video