Suppose a Consumer Has an Income of $800 Per Month

question 437

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 directly on the consumer's budget constraint?

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

---

Definitions:

Cognitive Therapy

Cognitive therapy is a form of psychotherapy that emphasizes the identification and restructuring of negative or irrational thoughts and beliefs that contribute to emotional distress and mental health disorders.

Exposure Therapy

A form of psychotherapy that helps individuals confront their fears and anxieties by gradual and repeated exposure to the feared object or context without any danger.

Dialectical Behavior

A comprehensive cognitive-behavioral therapy designed to treat individuals with severe emotional dysregulation, focusing on acceptance and change.

Aversive Conditioning

A behavioral technique involving the use of unpleasant stimuli to reduce or eliminate undesirable behaviors.