Refer to the above diagram.The break-even level of disposable income:
A)is zero.
B)is minus $10.
C)is $100.
D)cannot be determined from the information given.

Question

Refer to the above diagram.The break-even level of disposable income:
A)is zero. 
B)is minus $10. 
C)is $100. 
D)cannot be determined from the information given.

Quizplus · Accepted Answer

The break-even level of disposable income is where the budget line intersects with the indifference curve. In the diagram, the budget line intersects with the indifference curve at point A, which corresponds to a disposable income of $100. Therefore, the break-even level of disposable income is $100.

Refer to the Above Diagram