Multiple Choice
A consumer is currently spending all of her available income on two goods: music CDs and DVDs. At her current consumption bundle, she is spending twice as much on CDs as she is on DVDs. If the consumer has $120 of income and is consuming 10 CDs and 2 DVDs, what is the price of a CD?
A) $4
B) $8
C) $12
D) $20
Correct Answer:
Verified
Correct Answer:
Verified
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