Suppose you have $100 to spend on two goods: computer games, which cost $25 each, and audiobooks, which cost $10 each. The combination of two computer games and four audiobooks would fall
A) inside the budget line.
B) on the budget line.
C) outside the budget line.
D) cannot be determined based on the information.

Question

Quizplus · Accepted Answer

Two computer games cost $25 * 2 = $50, and four audiobooks cost $10 * 4 = $40. The total cost is $50 + $40 = $90, which is less than the budget of $100. Therefore, the combination of two computer games and four audiobooks would fall inside the budget line.

Suppose You Have $100 to Spend on Two Goods: Computer