Figure 10-5
-Refer to Figure 10-5.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 10-5 
-Refer to Figure 10-5.If the consumer has $240 to spend on DVDs and CDs,what is the price of a DVD if the budget constraint is BC1?

Quizplus · Accepted Answer

The budget constraint BC1 represents the consumer's total spending limit of $240. If the consumer spends all $240 on DVDs, and the price of each DVD is $20, they can purchase 12 DVDs ($240/$20 = 12), which aligns with the budget constraint.

Figure 10-5 -Refer to Figure 10-5.If the Consumer Has $240 to Spend