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Suppose a Consumer Spends Her Income on Two Goods: Music

Question 105

Multiple Choice

Suppose a consumer spends her income on two goods: music CDs and DVDs.The price of a CD is $8,and the price of a DVD is $20.If we graph the budget constraint by measuring the quantity of CDs purchased on the horizontal axis and the quantity of DVDs on the vertical axis,what is the slope of the budget constraint?


A) -5.0
B) -2.5
C) -0.4
D) The slope of the budget constraint cannot be determined without knowing the income the consumer has available to spend on the two goods.

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