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. Lingle's budget constraint is AC. His choice set is all points
A) in the area bounded by OAC.
B) to the right of budget constraint AC.
C) along budget constraint AC.
D) along the vertical and horizontal axes.

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. Lingle's budget constraint is AC. His choice set is all points
A) in the area bounded by OAC. 
B) to the right of budget constraint AC. 
C) along budget constraint AC. 
D) along the vertical and horizontal axes.

Quizplus · Accepted Answer

The choice set for Mr. Lingle includes all points within the area bounded by OAC because it represents all combinations of goods he can afford given his budget constraint. Points along and inside the budget line are feasible options.

Refer to the Information Provided in Figure 6