Figure 21-4
-Refer to Figure 21-4.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 21-4 
-Refer to Figure 21-4.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), the intersection of the $120 income line with the demand curve for good Y indicates a price of $3. This is the point where the consumer is willing to buy the most units of good Y given their income and the price of good X. Therefore, $3 is the best choice for the price of good Y at an income level of $120.