If she spends all her entertainment budget on evenings at her favorite nightclub she can go $1,200 ÷ $60 = 20 times, while if she only goes to movies she can go $1,200 ÷ $40 = 30 times. She can afford either (but of course not both) of these consumption bundles.
Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved