Suppose a Consumer Has an Income of $800 Per Month

question 90

Multiple Choice

Suppose a consumer has an income of $800 per month and that she spends her entire income each month on beer and bratwurst. The price of a pint of beer is $5, and the price of a bratwurst is $4. Which of the following combinations of beers and bratwursts represents a point that would lie to the interior of the consumer's budget constraint?

• A)160 beers and 200 bratwursts
• B)40 beers and 50 bratwursts
• C)80 beers and 100 bratwursts
• D)160 beers and 0 bratwursts

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