Figure 21-3

-Refer to Figure 21-3.In graph (a),if income is equal to $120,the price of good y is
A)$1
B)$2
C)$3
D)$4

Question

Figure 21-3
 
-Refer to Figure 21-3.In graph (a),if income is equal to $120,the price of good y is
A)$1 
B)$2 
C)$3 
D)$4

Quizplus · Accepted Answer

In graph (a), at an income level of $120, the budget line intersects the demand curve of good y at a price of $3. This means that a consumer with an income of $120 can purchase the most amount of good y if they buy it at a price of $3. Therefore, the best choice would be to purchase good y at a price of $3.

Figure 21-3 -Refer to Figure 21-3.In Graph (A),if Income Is Equal to Income