If the Price of Popcorn Is $0

question 30

Multiple Choice

If the price of popcorn is $0.50 per box and the price of peanuts is $0.25 per bag, and you have $10 to spend and decide to purchase 20 bags of peanuts, the maximum quantity of popcorn that you can purchase is _______ boxes.

• A) 8
• B) 10
• C) 12
• D) 16

---

Definitions:

Supply

The total amount of a product or service that is available for purchase at any given price level in a given market.

Quantity Supplied

The total amount of a particular good or service that producers are willing and able to sell at a given price over a specific time period.

Perfectly Inelastic

A situation in demand where the quantity demanded does not change in response to a change in price; represented graphically as a completely vertical demand curve.

Demand Curve

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers at various prices.