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

question 21

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 40 units of red money and 35 units of blue money to spend.The red price of ambrosia is 4 and the blue price of ambrosia is 5.The red price of bubble gum is 1 and the blue price of bubble gum is 1.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, 75)to (10, 35)and another running from (10, 35)to (17, 0).
• B)a vertical line segment and a horizontal line segment, intersecting at (10, 35).
• C)two line segments one running from (0, 75)to (7, 40)and the other running from (7, 40)to (17, 0).
• D)two line segments, one running from (0, 42)to (10, 35)and the other running from (10, 35)to (50, 0).
• E)a vertical line segment and a horizontal line segment, intersecting at (7, 40).

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Definitions:

Canadian Lake

A lake located in Canada. The term can refer to any of the thousands of lakes within the Canadian territory known for their natural beauty and ecological significance.

Summer

One of the four temperate seasons, characterized by the warmest temperatures of the year, typically occurring between spring and autumn.

Winter

The coldest season of the year, occurring between autumn and spring, characterized by lower temperatures and shorter days.

Lake Zone

A specific area or region within or around a lake, often characterized by unique ecological characteristics or management requirements.