Question

Suppose that you allocate $20 each week for your entertainment budget. This money is spent on two items: either renting movies for $1 each at Redbox or downloading songs from iTunes at $1 each. Given this information, which of the following would represent your budget constraint for entertainment?

1) Renting 20 movies from Redbox
2) Downloading 20 songs from iTunes
3) Renting 10 movies from Redbox and downloading 10 songs from iTunes
4) Renting 15 movies from Redbox and downloading 5 songs from iTunes

Answer 1

The student's budget constraint for entertainment is any combination of renting movies and downloading songs that does not exceed the $20 weekly budget.

Step-by-step explanation:

The student's budget constraint for entertainment is represented by the maximum amount of money they can spend on movies and songs within their entertainment budget.

With an allocation of $20 each week, each option provided represents a potential combination of movies and songs that could be rented or downloaded without exceeding the budget.

Examples of the budget constraint include:

• Renting 20 movies from Redbox
• Downloading 20 songs from iTunes
• Renting 10 movies from Redbox and downloading 10 songs from iTunes
• Renting 15 movies from Redbox and downloading 5 songs from iTunes

Each of these options totals up to $20 spent, which conforms to the budget limitation.