Scenario: Music Downloads and Streamed Movies Phillip Has an Income

Multiple Choice

Scenario: Music Downloads and Streamed Movies Phillip has an income of $300 per month, which he uses to purchase two goods, music downloads (MD) and streamed movies (SM) .Each music download costs $1 and each streamed movie costs
$5)
(Scenario: Music Downloads and Streamed Movies) Look at the scenario Music Downloads and Streamed Movies.Suppose Phillip's income falls by one-half, and the prices for both music downloads and streamed movies also fall by one-half.As a result of this, Phillip will notice that he:

A) can buy fewer music downloads if he spends all of his income on music downloads.
B) can buy fewer streamed movies if he spends all of his income on streamed movies.
C) will not notice any change in his budget line from before the income and price changes.
D) will experience a parallel shift out of his budget line.