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 A 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) not in Mr. Lingle's opportunity set but is 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 A 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) not in Mr. Lingle's opportunity set but is 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 A is on the budget constraint line AC, indicating that Mr. Lingle can afford this combination of goods with his current income and exactly spends all of his income on this combination.

Refer to the Information Provided in Figure 6