1.5. Bruno can spend his income on two different goods: Beyonc CDs and notebooks for his class...

1.5. Bruno can spend his income on two different goods: Beyoncé

CDs and notebooks for his class notes. For each of the following three situations, decide if the given consumption bundle is within Bruno’s consumption possibilities. Then decide if it lies on the budget line or not.

a. CDs cost $10 each, and notebooks cost $2 each. Bruno has income of $60. He is considering a consumption bundle containing 3 CDs and 15 notebooks.

b. CDs cost $10 each, and notebooks cost $5 each. Bruno has income of $110. He is considering a consumption bundle containing 3 CDs and 10 notebooks.

c. CDs cost $20 each, and notebooks cost $10 each. Bruno has income of $50. He is considering a consumption bundle containing 2 CDs and 2 notebooks.