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Dan likes to spend his allowance on two things: candy and toys. Which of the fol

ID: 2441239 • Letter: D

Question

Dan likes to spend his allowance on two things: candy and toys. Which of the following are the constraints that determine the possible consumption bundles of toys and candy available to Dan? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the option once to place a check mark. For incorrect answer(s), click the option twice to empty the box The number of cavities in his teeth The marginal utility he receives from each new toy The price of toys The marginal utility he receives from each additional candy The amount of his allowance The price of candy

Explanation / Answer

The constraint which determines the possible consumption bundles of the two things available to Dan is the budget line which is a function of the prices of candy, quantity demanded of candy, prices of toy , quantity demanded of toy and his money income.

The constraints are,

Price of toys, price of candy and the amount of his allowance.