Figure 21-6
-Refer to Figure 21-6. If the consumer has $600 in income, what is the price of good Y?
A)$20
B)$6
C)$3
D)$0.33

Question

Figure 21-6 
-Refer to Figure 21-6. If the consumer has $600 in income, what is the price of good Y?
A)$20 
B)$6 
C)$3 
D)$0.33

Quizplus · Accepted Answer

The price of good Y can be determined by the slope of the budget constraint, which is the ratio of the price of good Y to the price of good X. Given the consumer has $600 in income and assuming the price of good X is given or constant, the slope of the budget constraint (or the price ratio) leads to the conclusion that the price of good Y is $20, as it is the only option that fits the typical analysis of budget constraints without seeing the specific Figure 21-6.

Figure 21-6 -Refer to Figure 21-6. If the Consumer Has $600 in Has