Figure 10-9

-Refer to Figure 10-9.Consider the budget constraint BC₁.If the price of DVDs is $20 and the price of CDs is $10, what is the consumer's income?

Question

Figure 10-9
 
-Refer to Figure 10-9.Consider the budget constraint BC₁.If the price of DVDs is $20 and the price of CDs is $10, what is the consumer's income?

Quizplus · Accepted Answer

The budget constraint BC₁ represents the combinations of DVDs and CDs that a consumer can purchase with their income. If the price of DVDs is $20 and CDs is $10, and assuming the budget constraint allows for a maximum of 12 DVDs (12 DVDs x $20 = $240) or 24 CDs (24 CDs x $10 = $240), the consumer's income is $240.

Figure 10-9 -Refer to Figure 10-9.Consider the Budget Constraint BC₁.If the Price