-Figure 5-5 shows a consumer budget line for French fries and hamburgers.If the household has $20 to spend, the price of hamburgers is

Question

Quizplus · Accepted Answer

The correct price of hamburgers can be determined by examining the budget constraint, which is the combination of goods a consumer can purchase given their budget and the prices of goods. If the household has $20 to spend and the budget line indicates how many of each item they can buy with that $20, the slope of the budget line (which represents the price ratio of the two goods) and the intercepts (which show the maximum quantity of each good that can be bought if all money is spent on that good alone) can help identify the price of hamburgers. Without the specific details from Figure 5-5, the correct answer cannot be directly inferred from the question alone. However, assuming the correct answer is based on provided information or standard economic principles, the price of hamburgers is $2 if B is the correct choice. This would typically mean that for every hamburger bought, $2 is spent, and thus the total quantity of hamburgers that can be bought with $20 is directly related to their price.

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