-Rick's Income Is $54 a Week and He Spends All

question 11

Multiple Choice

-Rick's income is $54 a week and he spends all of it on CDs and sandwiches. The price of a CD is $18 and the price of a sandwich is $3. The figure above illustrates Rick's preferences. If the price of a CD falls to $6, Rick's consumption of CDs will increase by

• A) 1 CD per week.
• B) 2 CDs per week.
• C) 3 CDs per week.
• D) 4 CDs per week.

---

Definitions:

Unemployment

The situation when people who are willing to work at prevailing wage rates cannot find jobs.

Equilibrium

A state in which supply and demand are balanced, resulting in stable prices.

Supply And Demand

A fundamental economic concept that describes how prices vary based on the balance between the quantity of a good or service provided and the quantity consumers wish to purchase.

Union Workers

Individuals employed in various industries who are members of a labor union, an organization that advocates for workers' rights and benefits.