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Suppose a Consumer Spends Her Income on Two Goods: Music

Question 293

Multiple Choice

Suppose a consumer spends her income on two goods: music CDs and DVDs. The consumer has $200 to allocate to these two goods, the price of a CD is $10, and the price of a DVD is $20. What is the maximum number of CDs the consumer can purchase?


A) 10
B) 20
C) 40
D) 50

Correct Answer:

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