Suppose That Candies Are Usually Sold at $0

question 73

Multiple Choice

Suppose that candies are usually sold at $0.05 each. The local candy store offers 2 extra candies for free upon purchase of any 10 pieces. Suppose that Laurel gets an allowance of $3.00 per week. Which of the following is a false statement about her budget constraint if Laurel may consume either candy, x, measured on the horizontal axis or a composite good, y, measured on the vertical axis and priced at $1.00 per unit?

• A)The maximum number of candies Laurel can purchase is 72.
• B)The budget constraint has horizontal segments.
• C)The budget constraint is a straight line with a negative slope.
• D)With normally shaped preferences, Laurel will never refuse the free candies.

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Definitions:

Unemployed Classification

A categorization for individuals who are without a job but are available to work and have actively sought employment within a specific timeframe.

Voluntary Reasons

Motives or causes that lead individuals to make choices freely without external coercion, often influencing personal and economic decisions.

Labor Force

The cumulative count of individuals who either have a job or are seeking work actively.

Business Cycle Theories

Various economic theories that attempt to explain the causes and dynamics of the business cycle, including expansions and contractions in economic activity.