Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B the consumer is buying ________ DVDs and ________ CDs.
A) 0; 20
B) 20; 0
C) 20; 15
D) 40; 30

Question

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B the consumer is buying ________ DVDs and ________ CDs.
A) 0; 20 
B) 20; 0 
C) 20; 15 
D) 40; 30

Quizplus · Accepted Answer

At point B, Molly spends all her income on CDs. With a $400 income and CDs priced at $20 each, she can buy 20 CDs and 0 DVDs.

Refer to the Information Provided in Figure 6