-Refer to the above table. Assume the consumer spends his entire income. If the consumer's optimum at the current price of a movie is at 4 hotdogs and 4 movies, and the price of a hotdog is $1, what is the consumer's income?
A) $28
B) $20
C) $16
D) $40

Question

-Refer to the above table. Assume the consumer spends his entire income. If the consumer's optimum at the current price of a movie is at 4 hotdogs and 4 movies, and the price of a hotdog is $1, what is the consumer's income?
A) $28 
B) $20 
C) $16 
D) $40

Quizplus · Accepted Answer

The consumer buys 4 hotdogs at $1 each, totaling $4. Since the optimum includes 4 movies, the remaining income must be spent on movies. Therefore, the consumer's income is $4 (hotdogs) + $16 (movies) = $20.

-Refer to the Above Table