-The figure above shows Ronald's budget line. He has a weekly income of $20, which he spends on hotdogs and hamburgers. Ronald's real income in terms of hamburgers ________.
A) depends on the quantity of hamburgers consumed
B) depends on the quantity of hotdogs consumed
C) is $20
D) is 10 hamburgers

Question

-The figure above shows Ronald's budget line. He has a weekly income of $20, which he spends on hotdogs and hamburgers. Ronald's real income in terms of hamburgers ________.
A) depends on the quantity of hamburgers consumed 
B) depends on the quantity of hotdogs consumed 
C) is $20 
D) is 10 hamburgers

Quizplus · Accepted Answer

Ronald's real income in terms of hamburgers is determined by the maximum number of hamburgers he can buy with his $20 income. If the price of a hamburger is $2, then he can buy 10 hamburgers, making his real income in terms of hamburgers 10.

-The Figure Above Shows Ronald's Budget Line