Figure 5-5

-Figure 5-5 shows a consumer budget line for french fries and hamburgers.The price of an order fries is $2.The price of a burger is

Question

Figure 5-5
 
-Figure 5-5 shows a consumer budget line for french fries and hamburgers.The price of an order fries is $2.The price of a burger is

Quizplus · Accepted Answer

The budget line represents the combinations of two goods that a consumer can purchase given their budget. If the price of fries is $2, and assuming the budget line shows equal quantities of fries and burgers, the price of a burger must be $4 to maintain the budget constraint.

Figure 5-5 -Figure 5-5 Shows a Consumer Budget Line for French Fries