Figure 10-9
-Refer to Figure 10-9.If the consumer has $240 to spend on DVDs and CDs,what is the price of a DVD if the budget constraint is BC1?
A)$10
B)$20
C)$24
D)$40

Question

Figure 10-9 
-Refer to Figure 10-9.If the consumer has $240 to spend on DVDs and CDs,what is the price of a DVD if the budget constraint is BC1?
A)$10 
B)$20 
C)$24 
D)$40

Quizplus · Accepted Answer

The budget constraint BC1 represents the consumer's total spending limit of $240. If the consumer spends all $240 on DVDs, and the price of a DVD is $20, then they can purchase 12 DVDs ($240/$20 = 12), which aligns with the budget constraint.

Figure 10-9 -Refer to Figure 10-9.If the Consumer Has $240 to Spend