Figure 3.1.5
-Based on Figure 3.1.5, it can be inferred that:
A) the consumer does not consider orange juice as "good."
B) the consumer will never purchase any quantity of apple juice.
C) the consumer regards orange juice and apple juice as perfect substitutes.
D) the consumer regards orange juice and apple juice as perfect complements.

Question

Figure 3.1.5
-Based on Figure 3.1.5, it can be inferred that:
A) the consumer does not consider orange juice as "good." 
B) the consumer will never purchase any quantity of apple juice. 
C) the consumer regards orange juice and apple juice as perfect substitutes. 
D) the consumer regards orange juice and apple juice as perfect complements.

Quizplus · Accepted Answer

The figure shows a linear budget constraint between orange juice and apple juice, indicating that the consumer is willing to substitute one for the other at a constant rate. This indicates that the consumer regards orange juice and apple juice as perfect substitutes. The graph does not provide information to suggest that the consumer does not consider orange juice as "good" or that they would never purchase any quantity of apple juice. It also does not indicate that the two juices are perfect complements.

Figure 3.1.5 -Based on Figure 3.1.5, It Can Be Inferred That