Question 1
Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.
Refer to Figure 6.3. Molly's budget constraint is
AC. Molly can purchase
◦ none of the points along
AD.
◦ all of the points along
AB.
◦ all of the points along
BD.
◦ none of the points along
AC.
Question 2
Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.
Refer to Figure 6.3. Molly's budget constraint is
AB. It would swivel to
AD if the price of
◦ DVDs increased.
◦ DVDs decreased.
◦ CDs increased.
◦ CDs decreased.