Refer to the information provided in Figure 6.3 below to answer the question(s) that follow. Figure 6.3
-Refer to Figure 6.3. Molly's budget constraint is AC. Molly can purchase
A) none of the points along AD.
B) all of the points along AB.
C) all of the points along BD.
D) none of the points along AC.

Question

Refer to the information provided in Figure 6.3 below to answer the question(s) that follow.  Figure 6.3
-Refer to Figure 6.3. Molly's budget constraint is AC. Molly can purchase
A) none of the points along AD. 
B) all of the points along AB. 
C) all of the points along BD. 
D) none of the points along AC.

Quizplus · Accepted Answer

Molly's budget constraint is the line AC, which means she can afford any combination of goods that lies on or below this line. Therefore, all points along AB are within her budget constraint, as they are on or below the line AC.

Refer to the Information Provided in Figure 6