Figure 21-2
The downwardsloping line on the figure represents a consumer's budget constraint.
-Refer to Figure 21-2. Which of the following statements is not correct?
A) Points W, X, and Y all cost the consumer the same amount of money.
B) Point Z is unaffordable for the consumer given his budget constraint.
C) Point V costs less than point Z.
D) Points W, X, and Y give the consumer the same level of satisfaction.

Question

Figure 21-2
The downward­sloping line on the figure represents a consumer's budget constraint. 
-Refer to Figure 21-2. Which of the following statements is not correct?
A) Points W, X, and Y all cost the consumer the same amount of money. 
B) Point Z is unaffordable for the consumer given his budget constraint. 
C) Point V costs less than point Z. 
D) Points W, X, and Y give the consumer the same level of satisfaction.

Quizplus · Accepted Answer

Points W, X, and Y lie on the same budget line, indicating they cost the same, but they do not necessarily provide the same level of satisfaction as they represent different combinations of goods.

Figure 21-2 The Downward­sloping Line on the Figure Represents a Consumer's Budget

Figure 21-2 The Downwardsloping Line on the Figure Represents a Consumer's Budget