Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B she is buying DVDs and CDs.

A) 0; 20
B) 20; 0
C) 20; 15
D) 40; 30

Question

Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B she is buying ________ DVDs and ________ CDs.

A) 0; 20
B) 20; 0
C) 20; 15
D) 40; 30

Josue Ledezma · Accepted Answer

Final Answer : A, Explanation :  At point B, Molly spends all her income on CDs. With a price of $20 per CD, she can buy 20 CDs ($400/$20 = 20) and 0 DVDs.

Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B she is buying DVDs and CDs.

A) 0; 20
B) 20; 0
C) 20; 15
D) 40; 30

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B she is buying ________ DVDs and ________ CDs.A) 0; 20B) 20; 0C) 20; 15D) 40; 30

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Figure 6.5. Molly's budget constraint is BD. Molly's income is $400, the price of a DVD is $15 and the price of a CD is $20. At point B she is buying DVDs and CDs.

A) 0; 20
B) 20; 0
C) 20; 15
D) 40; 30