Suppose the only two goods that Brett consumes are wine and cheese. When wine sells for $10 a bottle and cheese sell for $10 a pound, his budget for wine and cheese is $100 per month. One day the price of wine falls to $5 a bottle and the price of cheese increases to $20 a pound, while his income does not change. What is the new bundle of wine and cheese he can consume?

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
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Suppose the only two goods that Brett consumes are wine and cheese. When wine sells for $10 a bottle
and cheese sell for $10 a pound, his budget for wine and cheese is $100 per month. One day the price
of wine falls to $5 a bottle and the price of cheese increases to $20 a pound, while his income does not
change. What is the new bundle of wine and cheese he can consume?
Select one:
О а.
10 bottles of wine and 10 pounds of cheese
Ob.
10 bottles of wine and 5 pounds of cheese
20 bottles of wine and 10 pounds of cheese
d.
20 bottles of wine and 5 pounds of cheese
Transcribed Image Text:Suppose the only two goods that Brett consumes are wine and cheese. When wine sells for $10 a bottle and cheese sell for $10 a pound, his budget for wine and cheese is $100 per month. One day the price of wine falls to $5 a bottle and the price of cheese increases to $20 a pound, while his income does not change. What is the new bundle of wine and cheese he can consume? Select one: О а. 10 bottles of wine and 10 pounds of cheese Ob. 10 bottles of wine and 5 pounds of cheese 20 bottles of wine and 10 pounds of cheese d. 20 bottles of wine and 5 pounds of cheese
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