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 John's Income = $60 CD Price = $10 Games price = $5 Budget line Schedule Nos of Nos

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 John's Income = $60 CD Price = $10 Games price = $5 Budget line Schedule Nos of Nos. of CD Games 0 12 1 10 2 8 3 4 4 5 6 John's Budget line Nee Answer 2 (e) John will choose, one after another, that good (between CD and game) which give him more utility than next best option. He will purchase five CDs first, and then two games. John will purchase 5 CDs + 2 Games, as shown by following diagram John's Equilibrium Point Unfo John's equilibrium point = 5 CDs and 2 games