Assume that a combination of 10 bottles of wine and 2 cartons of milk lies on a consumer's budget constraint.If the price of one bottle of wine is $10 and the price of one carton of milk is $1,what is the consumer's income?
A) $100
B) $20
C) $120
D) $102

Question

Quizplus · Accepted Answer

The consumer's income can be calculated by multiplying the quantity of each item by its price and then adding the totals together. For the wine, 10 bottles at $10 each equals $100. For the milk, 2 cartons at $1 each equals $2. Adding these together gives a total of $102.

Assume That a Combination of 10 Bottles of Wine and 2