Marc has a budget of $20 a month to spend on root beer and DVDs. The price of root beer is $5 a bottle, and the price of a DVD is $10. Figure 2 illustrates his preferences. Use Figure 2 to work Problems.
If the price of a DVD falls to $5 but the price of root beer and Marc's budget remain unchanged, what quantities of root beer and DVDs does Marc now buy? What are two points on Marc's demand curve for DVDs?
