Figure 21-1

-Refer to Figure 21-1.Which point in the figure showing a consumer's budget constraint represents the consumer's income divided by the price of a CD?
A) point A
B) point C
C) point D
D) point E

Question

Figure 21-1
 
-Refer to Figure 21-1.Which point in the figure showing a consumer's budget constraint represents the consumer's income divided by the price of a CD?
A) point A 
B) point C 
C) point D 
D) point E

Quizplus · Accepted Answer

Point D represents the consumer's income divided by the price of a CD because it is the point on the budget constraint where the consumer spends all their income on CDs, purchasing the maximum number possible given their budget.

Figure 21-1 -Refer to Figure 21-1.Which Point in the Figure Showing a the Figure