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The Initial Budget Equation for Pop (P)and Movies (M)is Qp

Question 101

Multiple Choice

The initial budget equation for pop (p) and movies (m) is Qp = 20 - 4Qm, and the price of a pop is $5. If the price of a pop falls to $4, what is the new budget equation?


A) Qp = 25 - 2Qm
B) Qp = 25 - 4Qm
C) Qp = 25 - 5Qm
D) Qp = 20 - 5Qm
E) none of the above

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