The price of DVDs​ (D) is $20.00 and the price of CDs​ (C) is $10.00. Phillip has a budget of $100.00 to spend on the two goods. Suppose that he has already bought 1 DVD and 1 CD. In​ addition, there are 3 more DVDs and 7 more CDs that he would really like to buy.The price of DVDs​ (D) is $20.00 and the price of CDs​ (C) is $10.00. Phillip has a budget of $100.00 to spend on the two goods. Suppose that he has already bought 1 DVD and 1 CD. In​ addition, there are 3 more DVDs and 7 more CDs that he would really like to buy. ​1.) Using the line drawing​ tool, given the above prices and​ income, draw his budget line in the figure.Label this line​ 'L'. 2.) Using the point drawing​ tool, and considering what Phillip has already purchased and what he still wants to​ purchase, identify the three different bundles of CDs and DVDs that he could choose. Label these points​ 'bundle 1',​ 'bundle 2', and​ 'bundle 3'.​ (Assume that he cannot purchase fractional​ units) Carefully follow the instructions​ above, and only draw the required objects.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The price of DVDs​ (D) is $20.00 and the price of CDs​ (C) is $10.00. Phillip has a budget of $100.00 to spend on the two goods. Suppose that he has already bought 1 DVD and 1 CD. In​ addition, there are 3 more DVDs and 7 more CDs that he would really like to buy.The price of DVDs​ (D) is $20.00 and the price of CDs​ (C) is $10.00. Phillip has a budget of $100.00 to spend on the two goods. Suppose that he has already bought 1 DVD and 1 CD. In​ addition, there are 3 more DVDs and 7 more CDs that he would really like to buy.

​1.) Using the line drawing​ tool, given the above prices and​ income, draw his budget line in the figure.Label this line​ 'L'.

2.) Using the point drawing​ tool, and considering what Phillip has already purchased and what he still wants to​ purchase, identify the three different bundles of CDs and DVDs that he could choose. Label these points​ 'bundle 1',​ 'bundle 2', and​ 'bundle 3'.​ (Assume that he cannot purchase fractional​ units)

Carefully follow the instructions​ above, and only draw the required objects.

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