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    Microeconomics A Contemporary Introduction Study Set 1
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    Exam 6: Appendix--Indifference Curves and Utility Maximization
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    A Candy Bar Sells for 50 Cents, Video Games Are
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A Candy Bar Sells for 50 Cents, Video Games Are

Question 32

Question 32

Multiple Choice

A candy bar sells for 50 cents, video games are 25 cents each, the horizontal (candy) intercept of Ann's budget line is 12, and the vertical (video game) intercept of Ann's budget line is 24.If Ann's income increased to $20, the vertical intercept would be


A) $4
B) $2
C) 20
D) 40
E) 80

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