Suppose a consumer spends her income on two goods: music CDs and DVDs.If the consumer has $200 to allocate to these two goods,the price of a CD is $10,and the price of a DVD is $20,what is the maximum number of CDs the consumer can purchase?

Question

Quizplus · Accepted Answer

If a CD costs $10 and the consumer has $200 to spend, she can buy a maximum of 20 CDs ($200/$10). On the other hand, a DVD costs $20, and with $200 to spend, the consumer can buy a maximum of 10 DVDs ($200/$20). Therefore, the consumer can choose to spend her entire budget on either CDs or DVDs, but she cannot buy more than 20 CDs or 10 DVDs with $200. Out of these options, the best choice would depend on the consumer's personal preferences and priorities.

Suppose a Consumer Spends Her Income on Two Goods: Music