-The figure above shows a consumer's budget line between soft drinks and DVD rentals. Point c represents an
A) affordable combination of soft drinks and DVDs that spends the entire budget.
B) affordable combination of soft drinks and DVDs that does not spend the entire budget.
C) unaffordable combination of soft drinks and DVDs.
D) affordable combination of soft drinks and DVDs, but whether it spends the entire budget cannot be determined from the figure.
E) None of the above answers is correct.

Question

-The figure above shows a consumer's budget line between soft drinks and DVD rentals. Point c represents an
A) affordable combination of soft drinks and DVDs that spends the entire budget. 
B) affordable combination of soft drinks and DVDs that does not spend the entire budget. 
C) unaffordable combination of soft drinks and DVDs. 
D) affordable combination of soft drinks and DVDs, but whether it spends the entire budget cannot be determined from the figure. 
E) None of the above answers is correct.

Quizplus · Accepted Answer

Point c, being on the budget line, represents a combination of goods (soft drinks and DVDs in this case) that exactly spends the entire budget, making it an affordable combination that utilizes the whole budget.

-The Figure Above Shows a Consumer's Budget Line Between Soft