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

question 1

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 16 units of red money and 42 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, 28)to (8, 21)and the other running from (8, 21)to (24, 0).
• B)two line segments, one running from (0, 37)to (8, 21)and another running from (8, 21)to (15, 0).
• C)two line segments one running from (0, 37)to (7, 16)and the other running from (7, 16)to (15, 0).
• D)a vertical line segment and a horizontal line segment, intersecting at (8, 21).
• E)a vertical line segment and a horizontal line segment, intersecting at (7, 16).

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Definitions:

Obsessive-compulsive Disorder

A mental disorder characterized by recurring, unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that the individual feels compelled to perform.

Major Depressive Disorder

A disorder related to mental health, defined by a continuous experience of feeling down or a diminished pleasure in tasks, resulting in major interference with daily routines.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about a number of different things.

Manic Episode

A period of abnormally elevated mood, energy, and activity levels, often characteristic of bipolar disorder.