Sam has $200 a month to spend on either tanning sessions or rounds of golf.Tanning sessions are $20 each,and a round of golf is $50.A point on Sam's budget constraint would be:
A) 20 tanning sessions and 8 rounds of golf.
B) 10 tanning sessions and 5 rounds of golf.
C) 10 tanning sessions and 4 rounds of golf.
D) 10 tanning sessions and 2 rounds of golf.

Question

Quizplus · Accepted Answer

Since tanning sessions are $20 each, Sam can afford 10 sessions with his budget of $200. Each round of golf is $50, so Sam can only afford 4 rounds with his budget. Therefore, the point on Sam's budget constraint would be (10, 4) which corresponds to 10 tanning sessions and 4 rounds of golf. This is the best choice as it fully utilizes Sam's budget without exceeding it.

Sam Has $200 a Month to Spend on Either Tanning