Refer to the information provided in Figure 6.1 below to answer the question(s) that follow. Figure 6.1
-Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hamburger is $8.00. Tom's monthly income is
A) $2.50.
B) $20.
C) $80.
D) $160.

Question

Refer to the information provided in Figure 6.1 below to answer the question(s) that follow.  Figure 6.1
-Refer to Figure 6.1. Assume Tom is on budget constraint AC and the price of a hamburger is $8.00. Tom's monthly income is
A) $2.50. 
B) $20. 
C) $80. 
D) $160.

Quizplus · Accepted Answer

If Tom is on budget constraint AC and the price of a hamburger is $8.00, then the total income can be calculated by multiplying the maximum quantity of hamburgers he can buy (point A on the budget line) by the price per hamburger. If point A represents 20 hamburgers, then his income is 20 x $8 = $160.

Refer to the Information Provided in Figure 6