The price of CDs is $15 and the price of pizzas is $10. Derek spends all of his income buying 2 CDs and 6 pizzas per week (and nothing else). Determine Derek's income, draw his budget line and represent his utility-maximizing point using an indifference curve.
What will be an ideal response?
(2 CDs × $15) + (6 Pizzas × $10) = $90 of income. The utility-maximizing combination is represented in Figure 5.9.
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a. True b. False Indicate whether the statement is true or false
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What will be an ideal response?