Refer to the Budget Line Shown in the Diagram Below

question 115

Multiple Choice

Refer to the budget line shown in the diagram below. If the consumer's money income is $20, the:

• A) prices of C and D cannot be determined.
• B) price of C is $2 and the price of D is $4.
• C) consumer can obtain a combination of 5 units of both C and D
• D) price of C is $4 and the price of D is $2.

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Definitions:

Violation-of-Expectation

A method used in developmental psychology research to study infants' understanding of physical and social world by evaluating their reactions to surprising or unexpected events.

Stimulus

Something that causes a response in an organism, sensory system, or psychological process.

Physical Laws

The fundamental principles that describe the forces and properties of nature, governing the behavior of the physical universe.

Cognitive Ability

The capacity to perform higher mental processes of reasoning, remembering, understanding, problem solving, and decision making.