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

question 12

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 18 units of red money and 36 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, 36)to (6, 18)and the other running from (6, 18)to (15, 0).
• B)two line segments, one running from (0, 36)to (9, 18)and another running from (9, 18)to (15, 0).
• C)two line segments, one running from (0, 24)to (9, 18)and the other running from (9, 18)to (27, 0).
• D)a vertical line segment and a horizontal line segment, intersecting at (9, 18).
• E)a vertical line segment and a horizontal line segment, intersecting at (6, 18).

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Definitions:

Credentials

Qualifications, achievements, personal qualities, or aspects of a person's background, typically used to indicate that they are suitable for something.

Anxious People

Individuals who frequently experience intense feelings of worry, nervousness, or unease about something with an uncertain outcome.

Future

The time or a period of time following the moment of speaking or writing; time regarded as still to come.

Functionalists

In psychology, a school of thought focusing on the mental processes and behaviors that help an organism adapt to its environment.