Figure 3-3 shows dollar outlays a composite good on the vertical axis and units of good X costing $5 a unit measured on the horizontal axis.
Figure 3-3
-Given the indifference curve and the budget line shown in Figure 3-3,which of the following is correct?
A)The slope of the budget line is $5
B)The prices of other goods vary with income
C)The slope of the budget line shows how much the consumer is willing to reduce dollar outlays on other goods to obtain one more unit of clothing
D)The optimal point of consumption is at point E

Question

Figure 3-3 shows dollar outlays a composite good on the vertical axis and units of good X costing $5 a unit measured on the horizontal axis.
Figure 3-3 
-Given the indifference curve and the budget line shown in Figure 3-3,which of the following is correct?
A)The slope of the budget line is $5 
B)The prices of other goods vary with income 
C)The slope of the budget line shows how much the consumer is willing to reduce dollar outlays on other goods to obtain one more unit of clothing 
D)The optimal point of consumption is at point E

Quizplus · Accepted Answer

The Answer of Figure 3-3 shows dollar outlays a composite good on the vertical axis and units of good X costing $5 a unit measured on the horizontal axis.
Figure 3-3 
-Given the indifference curve and the budget line shown in Figure 3-3,which of the following is correct?
A)The slope of the budget line is $5 
B)The prices of other goods vary with income 
C)The slope of the budget line shows how much the consumer is willing to reduce dollar outlays on other goods to obtain one more unit of clothing 
D)The optimal point of consumption is at point E

Figure 3-3 Shows Dollar Outlays a Composite Good on the Vertical