Figure 21-6
-Refer to Figure 21-6. Suppose the price of popcorn is $2, the price of Mt. Dew is $4, the value of A is 30, and the value of B is 15. How much income does the consumer have?
A)$120
B)$80
C)$60
D)$30

Question

Figure 21-6 
-Refer to Figure 21-6. Suppose the price of popcorn is $2, the price of Mt. Dew is $4, the value of A is 30, and the value of B is 15. How much income does the consumer have?
A)$120 
B)$80 
C)$60 
D)$30

Quizplus · Accepted Answer

The budget constraint equation is 2P + 4Q = I. Substituting the given values, we get 2(30) + 4(15) = I, which simplifies to I = $120. Therefore, the consumer has an income of $120.
The best choice(s) cannot be determined with the given information as we don't know the preferences or utility function of the consumer.

Figure 21-6 -Refer to Figure 21-6. Suppose the Price of Popcorn Is