Use the Following to Answer Questions

question 200

Multiple Choice

Use the following to answer questions:
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.
-(Scenario: Music Downloads and Streamed Movies) Read the scenario Music Downloads and Streamed Movies. The slope of Phillip's budget line is equal to:

• A) -0.2.
• B) -5.
• C) -0.4.
• D) -2.5.

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Definitions:

Lessor

An entity or individual that leases or rents property or assets to a lessee.

Lessee

The entity that obtains the right to use an asset under a lease agreement from the lessor.

Uses the Asset

Refers to how an asset is employed within a business or investment strategy to generate returns or benefits.

Conditional Sales Agreement Lease

A financial arrangement where the lessee acquires an asset under a lease agreement but only becomes the owner upon full payment of the lease.