Figure 6.7
-Refer to Figure 6.7.If the consumer has $240 to spend on DVDs and CDs, what is the price of a DVD if the budget constraint is BC₁?

Question

Figure 6.7 -Refer to Figure 6.7.If the consumer has $240 to spend on DVDs and CDs, what is the price of a DVD if the budget constraint is BC₁? A)$10 B)$20 C)$24 D)$40

Quizplus · Accepted Answer

The budget constraint BC₁ indicates that the consumer can afford to buy 12 DVDs (S1) or 6 CDs (U1) with $240. To find the price of one DVD, divide the total budget by the quantity of DVDs: $240 / 12 DVDs = $20 per DVD.

Figure 6.7 -Refer to Figure 6.7.If the Consumer Has $240 to Spend