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31 December, 07:42

Adam has a monthly income of $20 that can be spent on books (B) and pencils (P). The price of a book is $5 and the price of a pencil is $0.50. Which of the following bundles of books and pencils lies ON Adam's budget line?

A. 2 books and 20 pencils

B. 1 book and 40 pencils

C. 3 books and 5 pencils

D. no books and 20 pencils

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  1. 31 December, 07:54
    0
    A. 2 books and 20 pencils

    Explanation:

    2 x5$ = 10$

    20x 0.50$ = 10$

    10$+10$=20$
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