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Scenario: Music Downloads and Streamed Movies
Phillip has an income of $300 per month, which he uses to purchase music downloads (MD) and streamed movies (SM). Each music download costs $1 and each streamed movie costs $5.
-(Scenario: Music Downloads and Streamed Movies) Read the scenario Music Downloads and Streamed Movies. Which of the following equations expresses Phillip's budget line?
A) 300 = 1MD + 5SM
B) SM = 300 - 1X
C) 300 = 1 / MD + 5 / SM
D) SM = 300 + 5SM

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Quizplus · Accepted Answer

The budget line equation is 300 = 1MD + 5SM, which means that Phillip has a total of $300 to spend on music downloads and streamed movies, and that each music download costs $1 and each streamed movie costs $5.

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