Question 1
Refer to the information provided in Figure 6.5 below to answer the question(s) that follow.
Refer to Figure 6.5. Molly's budget constraint is
CD. Molly's income is $75, the price of a DVD is $3 and the price of a CD is $5. At point
D, she is buying ________ DVDs and ________ CDs.
◦ 0; 15
◦ 25; 0
◦ 25; 15
◦ 50; 30
Question 2
Refer to the information provided in Figure 6.6 below to answer the question(s) that follow.
Refer to Figure 6.6. Bill's budget constraint was originally
CD. If his new budget constraint is
EF, then his income
◦ increased.
◦ decreased.
◦ did not change but the price of black beans decreased.
◦ did not change but the price of bell peppers decreased.
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