Asked by Panthira Aungsuworapruek on May 20, 2024
Verified
A student spends all of her income on pizza and books.When pizzas cost $3 each and books cost $10 each, she consumed 30 pizzas and 3 books per month.The price of pizzas fell to $2.90 each while the price of books rose to $11 each.The price change
A) made her worse off.
B) left her exactly as well off as before.
C) left her at least as well off as before and possibly helped her.
D) might have helped her, might have harmed her.We can't tell which unless we observe what she consumed after the price change.
E) had the same effect as a $3 increase in her income.
Income
refers to money received, especially on a regular basis, for work or through investments.
Pizza
A popular dish of Italian origin, consisting of a round, flattened base of leavened wheat-based dough topped with tomatoes, cheese, and various other ingredients, baked at a high temperature.
Books
Bound printed works consisting of written or illustrated pages, typically used for reading or study.
- Comprehend how changes in prices and income affect consumption choices under different circumstances.
Verified Answer
KR
Kayla ReidtMay 25, 2024
Final Answer :
C
Explanation :
Before the price change, she spent $90 on pizzas and $30 on books for a total of $120 per month. After the price change, her pizza expenses decreased to $87 and her book expenses increased to $33 for a total of $120.30 per month. Therefore, she is at least as well off as before, if not better off.
Learning Objectives
- Comprehend how changes in prices and income affect consumption choices under different circumstances.