Suppose a consumer has an income of $800 per month and that she spends her entire income each month on beer and hamburgers. The price of a pint of beer is $5, and the price of a hamburger is $4. Which of the following combinations of beer and hamburgers represent a point that would lie to the exterior of the consumer’s budget constraint?
a.160 beers and 200 bratwursts
b.40 beers and 50 bratwursts
c.80 beers and 100 bratwursts
d.160 beers and 0 bratwursts
Answers: 3
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Suppose a consumer has an income of $800 per month and that she spends her entire income each month...
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