Scenario: Tom's Budget Constraint
Tom is trying to decide how to allocate his $50 budget for music downloads and online movie streaming when the price of a music download is $1 and the price of a movie is $5.
(Scenario: Tom's Budget Constraint) Look at the scenario Tom's Budget Constraint.If we measure music downloads on the horizontal axis and movies on the vertical axis, the vertical intercept of Tom's budget line is:
A.10.
B.5.
C.2.
D.1/2.
Correct Answer:
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