Figure 21-5

-Refer to Figure 21-5.In graph (a),if income is equal to $120,the price of good Y is
A) $3.
B) $4.
C) $10.
D) $12.

Name: Figure 21-5 -Refer to Figure 21-5.In graph (a),if income is equal to $120,the price of good Y is A) $3. B) $4. C) $10. D) $12.
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Question

Figure 21-5

-Refer to Figure 21-5.In graph (a),if income is equal to $120,the price of good Y is
A) $3. 
B) $4. 
C) $10. 
D) $12.

Quizplus · Accepted Answer

At an income of $120, the budget line intersects the vertical axis at $12. The price of good Y is $12 divided by the slope of the budget line, which is 3. Therefore, the price of good Y is $12/3 = $4.

Figure 21-5 -Refer to Figure 21-5.In Graph (A),if Income Is Equal to 21-5.In