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Scenario: Tom's Budget Constraint
Tom is trying to decide how to allocate his $50 budget for music downloads and online movie streaming when the price of a music download is $1 and the price of a movie is $5.
-(Scenario: Tom's Budget Constraint) Read the scenario Tom's Budget Constraint. The combination _____ music downloads and _____ movies lies OUTSIDE Tom's budget line. (Tom cannot afford this combination.)
A) 50; 10
B) 50; no
C) no; 5
D) 20; 5

Question

Use the following to answer questions 
Scenario: Tom's Budget Constraint
Tom is trying to decide how to allocate his $50 budget for music downloads and online movie streaming when the price of a music download is $1 and the price of a movie is $5.
-(Scenario: Tom's Budget Constraint) Read the scenario Tom's Budget Constraint. The combination _____ music downloads and _____ movies lies OUTSIDE Tom's budget line. (Tom cannot afford this combination.)
A) 50; 10
B) 50; no
C) no; 5
D) 20; 5

Quizplus · Accepted Answer

The combination of 50 music downloads and 10 movies costs $100, which exceeds Tom's $50 budget.

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