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 consumer's income can be calculated by finding the maximum amount they can spend on either DVDs or CDs. If the price of DVDs is $20, and the budget constraint allows for 12 DVDs (since $240/$20 = 12), the income is $240. Similarly, if the price of CDs is $10, and the budget constraint allows for 24 CDs (since $240/$10 = 24), the income is also $240.

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

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