George Has a Weekly Income (I)of $50,which He Uses to Purchase

question 85

Multiple Choice

George has a weekly income (I) of $50,which he uses to purchase doughnuts (D) and coffee (C) .If the price of a doughnut is $1 and the price of coffee is $2.50,which consumption bundle lies BEYOND George's budget constraint?

• A)10C and 25D
• B)15C and 15D
• C)5C and 10D
• D)5C and 5D

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Definitions:

Business Transaction

An economic event or activity that changes an entity's financial statements, involving the exchange of goods, services, or funds between two or more parties.

Shortage Cost

Costs incurred from not having enough inventory or resources to meet demand, leading to potential lost sales.

Storage Costs

Expenses incurred for storing goods or materials until they are used or sold, which can impact a company's overall profitability.

Insurance Cost

Insurance cost is the expense incurred in purchasing insurance policies, offering protection against potential financial losses.