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Figure: A Budget Constraint for CDs and Movies
-(Figure: A Budget Constraint for CDs and Movies) Look at the figure A Budget Constraint for CDs and Movies. Chantal likes to spend her weekly income on new CDs and tickets to see movies. The price of a CD is $12 and the movie ticket price is $10. The graph shows Chantal's budget line. What is her weekly income?
A) $240
B) $100
C) $120
D) $22

Question

Use the following to answer question:
Figure: A Budget Constraint for CDs and Movies 
-(Figure: A Budget Constraint for CDs and Movies) Look at the figure A Budget Constraint for CDs and Movies. Chantal likes to spend her weekly income on new CDs and tickets to see movies. The price of a CD is $12 and the movie ticket price is $10. The graph shows Chantal's budget line. What is her weekly income?
A) $240 
B) $100 
C) $120 
D) $22

Quizplus · Accepted Answer

The budget line represents all combinations of CDs and movies Chantal can purchase with her income. If she spends all her income on CDs, she can buy 10 CDs ($12 each), which means her income is $120.

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