Use the figure below to answer the following questions. Figure 9.1.2
-Refer to Figure 9.1.2.Which budget line shows the greatest real income in terms of music downloads?
A)AD
B)BD
C)CD
D)Real income is equal for all three budget lines.
E)Cannot be determined without studying the indifference curves.

Question

Use the figure below to answer the following questions.  Figure 9.1.2
-Refer to Figure 9.1.2.Which budget line shows the greatest real income in terms of music downloads?
A)AD 
B)BD 
C)CD 
D)Real income is equal for all three budget lines. 
E)Cannot be determined without studying the indifference curves.

Quizplus · Accepted Answer

Budget line CD shows the greatest real income in terms of music downloads because it is the furthest from the origin. This means that consumers can purchase more music downloads with the same amount of money on budget line CD than on budget lines AD or BD.

Use the Figure Below to Answer the Following Questions