Solved

Suppose a Consumer Spends Her Income on Two Goods: Music

Question 28

Multiple Choice

Suppose a consumer spends her income on two goods: music CDs and DVDs.If the price of a CD is $8,the price of a DVD is $20,and we graph the budget constraint by placing the quantity of CDs purchased on the horizontal axis,what is the slope of the budget constraint?


A) -5.0
B) -2.5
C) -0.4
D) The slope of the budget constraint cannot be determined without knowing the income the consumer has available to spend on the two goods.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q24: Suppose the only two goods that Brett

Q26: Figure 21-3
Figure 21-3 </p></div><svg width=

Q27: The price of gin has risen from

Q30: Scenario 21-1
Suppose the price of pizza is

Q31: Scenario 21-1
Suppose the price of pizza is

Q32: Figure 21-3
Figure 21-3 </p></div><svg width=

Q33: Suppose a consumer spends her income on

Q81: If the price of bread is zero,the

Q121: A family on a trip budgets $800

Q131: Suppose a consumer is currently spending all

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents