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-Kristen Has an Income of $450 Per Year to Spend

Question 340

Multiple Choice

-Kristen has an income of $450 per year to spend on music CDs and movies on DVDs. Initially the price of a CD is $15 and the price of a DVD is $22.50. The indifference curves in the figure above (I<sub>1</sub>, I<sub>2</sub>, and I<sub>3</sub>) reflect Kristen's preferences. If the price of a DVD falls to $18, Kristen will buy A) 10 DVDs and 15 CDs per year. B) 15 DVDs and 12 CDs per year. C) 12.5 DVDs and 11 CDs per year. D) 13 DVDs and 15 CDs per year.
-Kristen has an income of $450 per year to spend on music CDs and movies on DVDs. Initially the price of a CD is $15 and the price of a DVD is $22.50. The indifference curves in the figure above (I1, I2, and I3) reflect Kristen's preferences. If the price of a DVD falls to $18, Kristen will buy


A) 10 DVDs and 15 CDs per year.
B) 15 DVDs and 12 CDs per year.
C) 12.5 DVDs and 11 CDs per year.
D) 13 DVDs and 15 CDs per year.

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