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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?

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?

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter10: Consumer Choice Theory
Section: Chapter Questions
Problem 8P
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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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