-The figure above shows a consumer's budget line between sodas and DVD rentals.Point b represents an
A) affordable combination of sodas and DVDs that spends the entire budget.
B) affordable combination of sodas and DVDs that does not spend the entire budget.
C) unaffordable combination of sodas and DVDs.
D) affordable combination of sodas and DVDs but whether it spends the entire budget cannot be determined from the figure.
E) None of the above answers is correct.

Question

-The figure above shows a consumer's budget line between sodas and DVD rentals.Point b represents an
A) affordable combination of sodas and DVDs that spends the entire budget. 
B) affordable combination of sodas and DVDs that does not spend the entire budget. 
C) unaffordable combination of sodas and DVDs. 
D) affordable combination of sodas and DVDs but whether it spends the entire budget cannot be determined from the figure. 
E) None of the above answers is correct.

Quizplus · Accepted Answer

Point b, located on the budget line, represents a combination of goods (sodas and DVD rentals) that exactly spends the entire budget, making it an affordable combination that utilizes all available funds.

-The Figure Above Shows a Consumer's Budget Line Between Sodas