The Amazing Andy spends all of his \$1,200 income on magic tricks. If card tricks cost \$50 and wand tricks cost \$300, which of the following consumption bundles lies upon Amazing Andy's budget constraint?

• A. 10 card tricks and 2 wand tricks
• B. 8 card tricks and 3 wand tricks
• C. 24 card tricks and 4 wand tricks
• D. 18 card tricks and 1 wand tricks

Answer: (D)

Verified step by step guidance

1. Identify the total income available to Amazing Andy, which is \$1,200.
2. Determine the cost of each type of trick: card tricks cost \$50 each and wand tricks cost \$300 each.
3. Set up the budget constraint equation: \$50C + \$300W = \$1,200, where C is the number of card tricks and W is the number of wand tricks.
4. Substitute each given consumption bundle into the budget constraint equation to check if it satisfies the equation.
5. For the bundle 18 card tricks and 1 wand trick, substitute C = 18 and W = 1 into the equation: \$50(18) + \$300(1) = \$1,200, and verify if the equation holds true.