A Consumer Has $20 That He Wants to Spend on Two

question 19

Multiple Choice

A consumer has $20 that he wants to spend on two goods: pens priced at $2 each and pencils priced at $1 each.Which of the following correctly represents his budget constraint?

• A) $20 = ($2/Quantity of pens) + ($1/Quantity of pencils)
• B) $20 = ($2 × Quantity of pens) + ($1 × Quantity of pencils)
• C) $20 = ($3/Quantity of pens + Quantity of pencils)
• D) $20 = $3 × (Quantity of pens - Quantity of pencils)

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