Scenario: Tom's Budget Constraint

question 99

Essay

Scenario: Tom's Budget Constraint
Tom is trying to decide how to allocate his $50 budget for music downloads and online movie streaming when the price of a music download is $1 and the price of a movie is $5.
(Scenario: Tom's Budget Constraint) Look at the scenario Tom's Budget Constraint.Which of the following combinations of music downloads and movies lies on Tom's budget line?
A.50 music downloads and 10 movies
B.50 music downloads and 0 movies
C.0 music downloads and 5 movies
D.100 music downloads and 5 movies

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