Refer to the information provided in Figure 6.2 below to answer the question(s) that follow. Figure 6.2
-Refer to Figure 6.2. Mr. Lingleʹs budget constraint is AC. Point D is
A) an available option and Mr. Lingle exactly spends all of his income.
B) an available option and Mr. Lingle does not spend all of his income.
C) in Mr. Lingle's opportunity set but is not on his budget constraint.
D) not available because it represents a combination of gardenburgers and beer that Mr. Lingle cannot purchase with his current income.

Question

Refer to the information provided in Figure 6.2 below to answer the question(s) that follow.  Figure 6.2
-Refer to Figure 6.2. Mr. Lingleʹs budget constraint is AC. Point D is
A) an available option and Mr. Lingle exactly spends all of his income. 
B) an available option and Mr. Lingle does not spend all of his income. 
C) in Mr. Lingle's opportunity set but is not on his budget constraint. 
D) not available because it represents a combination of gardenburgers and beer that Mr. Lingle cannot purchase with his current income.

Quizplus · Accepted Answer

Point D is not on or within the budget constraint line AC, meaning it represents a combination of goods that exceeds Mr. Lingle's budget, making it an option he cannot afford with his current income.

Refer to the Information Provided in Figure 6