Adam Has a Monthly Income of $20 That Can Be

question 116

Multiple Choice

Adam has a monthly income of $20 that can be spent on books (B) and pencils (P) .The price of a book is $5 and the price of a pencil is $0.50.The equation for Adam's daily budget constraint can be written as:

• A) 5(B)+ 0.50(P)  20.
• B) 0.50(B)+ 5(P)  20.
• C) 20(B)+ 0.50(P)  5.
• D) 0.50(B)+ 20(P)  5.

---

Definitions:

Price

The amount of money required to purchase a good, service, or asset. It acts as a signal to both buyers and sellers in a market.

Competitors

Competitors are companies or entities that operate in the same or a similar industry and vie for the same customers or market share.

Unfair Competition

Business practices that are deemed unethical or illegal, aiming to gain an unfair market advantage.

Oligopolist

An oligopolist is a participant within an oligopoly, which is a market structure characterized by a small number of firms dominating the industry, often leading to limited competition and higher prices for consumers.