(Scenario: Music Downloads and Streamed Movies)Read the Scenario Music Downloads

question 41

Multiple Choice

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

• 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.
• D)will undergo a parallel shift out of his budget line.

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Definitions:

Needs Hierarchy

A theory of human motivation that is often visualized as a pyramid, with the most basic needs at the bottom.

Abram Maslow

A psychologist best known for creating Maslow's hierarchy of needs, a theory of psychological health predicated on fulfilling innate human needs.

Needs Hierarchy

A theory, often associated with Abraham Maslow, which suggests that human needs are arranged in a hierarchy, starting from basic physical requirements up to higher needs like self-actualization.

Physiological

Physiological pertains to the functions and processes that occur within living organisms, providing a basis for understanding physical and biological needs.