The following figure displays John's budget constraint when he spends his income on tables and chairs.

-Refer to the figure above.If John spends his entire income on chairs,how many chairs can he purchase?
A) 3
B) 8
C) 20
D) 40

Question

The following figure displays John's budget constraint when he spends his income on tables and chairs.
 
-Refer to the figure above.If John spends his entire income on chairs,how many chairs can he purchase?
A) 3 
B) 8 
C) 20 
D) 40

Quizplus · Accepted Answer

If John spends his entire income on chairs, he would be on the y-axis, where the budget line intersects it. At this point, the number of chairs he can purchase is 8.

The Following Figure Displays John's Budget Constraint When He Spends