Suppose a Consumer Has $100 to Spend on Two Goods,shoes

question 226

Multiple Choice

Suppose a consumer has $100 to spend on two goods,shoes and shirts.If the price of a pair of shoes is $20 per pair and the price of a shirt is $15 each,which of the following combinations is unaffordable to the consumer?

• A) 5 pairs of shoes and 0 shirts
• B) 2 pairs of shoes and 4 shirts
• C) 0 pairs of shoes and 7 shirts
• D) 2 pairs of shoes and 3 shirts
• E) 0 pairs of shoes and 0 shirts

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Definitions:

Positive Profits

When a company's total revenue exceeds its total costs, resulting in a financial gain.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a specified time period.

Profit-Maximizing

A strategy or point at which a business makes the highest profit possible, given its production costs and market demand.

Total Revenue

The entire amount of income generated by the sale of goods or services by a company before any expenses are deducted.