Assume that a consumer can spend $20 on two goods–pens and pencils. If the price of one pen is $5 and the price of one pencil is $2, which of the following combinations of the two goods represents a point on the consumers budget constraint?
A) 3 pens and 2 pencils
B) 1 pen and 10 pencils
C) 2 pens and 5 pencils
D) 2 pens and 3 pencils
C
You might also like to view...
When people who are willing and able to work cannot find jobs, ________ is said to exist
Fill in the blank(s) with correct word
As long as both current and future consumption are normal goods, a decrease in the interest rate will result in a drop in savings.
Answer the following statement true (T) or false (F)
If a firm has no ability to select the price of its product, it:
a. will go out of business due to losses. b. is a price-maker. c. cannot maximize profit. d. has a horizontal individual demand curve.
The institution that monitors and enforces trade agreements and promotes free trade is:
A. the World Bank. B. UNICEF. C. the World Trade Organization. D. the National Alliance Trade Organization.