Every Consumer Has a Red-Money Income and a Blue-Money Income

question 12

Multiple Choice

Every consumer has a red-money income and a blue-money income and each commodity has a red price and a blue price.You can buy a good by paying for it either with blue money at the blue price or with red money at the red price.Harold has 18 units of red money and 36 units of blue money to spend.The red price of ambrosia is 2 and the blue price of ambrosia is 6.The red price of bubble gum is 1 and the blue price of bubble gum is 2.If ambrosia is on the horizontal axis, and bubble gum on the vertical axis, then Harold's budget set is bounded by

• A)two line segments one running from (0, 36)to (6, 18)and the other running from (6, 18)to (15, 0).
• B)two line segments, one running from (0, 36)to (9, 18)and another running from (9, 18)to (15, 0).
• C)two line segments, one running from (0, 24)to (9, 18)and the other running from (9, 18)to (27, 0).
• D)a vertical line segment and a horizontal line segment, intersecting at (9, 18).
• E)a vertical line segment and a horizontal line segment, intersecting at (6, 18).

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Definitions:

Fertility Drugs

Medications that stimulate egg or sperm production to increase the chance of pregnancy in cases of infertility.

Multiple Pregnancy

A pregnancy in which more than one fetus develops simultaneously in the womb, such as twins or triplets.

Ethnicity

A category of people who identify with each other based on common linguistic, cultural, ancestral, or social traits.

Diet

A regulated selection or restriction of food and drink, often for weight management or medical reasons.