George has a weekly income (I) of $50, which he uses to purchase doughnuts (D) and coffee (C). If the price of a doughnut is $1 and the price of coffee is $2.50, which of the following consumption bundles lies BEYOND George's budget constraint?
a. 10C and 25D
b. 15C and 15D
c. 5C and 10D
d. 5C and 5D

b. 15 C and 15 D

Explanation:

Given:

George has a weekly income (I) = $50,

Price of a doughnut = $1

Price of coffee = $2.50

Question asked:

Which of the following consumption bundles lies BEYOND George's budget constraint?

Solution:

By multiplying number of pieces of each item to its respective prices,we get

a. 10C and 25D  = 10 2.5 + 251  (unitary method)

                          = 25 + 25 = 50

b. 15C and 15D  = 15 2.5 + 15 1

                         = 37.5 + 15 = 52.5

c. 5C and 10D  = 52.5 + 10 1

                       = 12.5 + 10 = 22.5

d. 5C and 5D = 5 2.5 + 5 1

                      = 12.5 + 5 = 17.5

Hence, option  (b)  15 pieces of Coffee and 15 pieces of Doughnut lies beyond George's budget constraint.

answer; (d) i believe that the correct answer is ; /// a new invention lowers the cost of production;

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"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"