Refer to the information provided in Figure 6.5 below to answer the question(s) that follow. Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $375, the price of a DVD is $15 and the price of a CD is $25. At point D the consumer is buying ________ DVDs and ________ CDs.
A) 0; 15
B) 25; 0
C) 25; 15
D) 50; 30

Question

Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.  Figure 6.5
-Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $375, the price of a DVD is $15 and the price of a CD is $25. At point D the consumer is buying ________ DVDs and ________ CDs.
A) 0; 15 
B) 25; 0 
C) 25; 15 
D) 50; 30

Quizplus · Accepted Answer

At point D, Molly spends all her income on DVDs. With a price of $15 per DVD, she can buy 25 DVDs ($375/$15 = 25) and 0 CDs.

Refer to the Information Provided in Figure 6