Suppose You Have $100 to Spend on Two Goods: $20

question 229

Multiple Choice

Suppose you have $100 to spend on two goods: $20 for DVDs or $10 for books. Which combination of the two goods is NOT on the budget line?

• A) eight books, one DVD
• B) four books, three DVDs
• C) seven books, three DVDs
• D) two books, four DVDs

---

Definitions:

Typical Consumer

An average or representative individual in the economy who consumes goods and services and whose behaviors reflect broader consumer trends.

Surveying Consumers

The process of gathering information, preferences, and opinions from individuals who purchase goods and services.

Consumer Spending

The total amount of money spent by households in an economy on goods and services.

Bureau Of Labor Statistics

A U.S. government agency responsible for collecting and analyzing labor economic data to support public and private decision making.