-Refer to Figure 5.2.If the government rations gas to 50 gallons,the consumer's budget line would be given by the line
A) Abc
B) Abd
C) 50bd
D) 50bc

Question

-Refer to Figure 5.2.If the government rations gas to 50 gallons,the consumer's budget line would be given by the line
A) Abc 
B) Abd 
C) 50bd 
D) 50bc

Quizplus · Accepted Answer

When the government rations gas to 50 gallons, the consumer's budget line would shift to reflect the maximum quantity of gas they can purchase, regardless of their budget for other goods. The line labeled "50bc" correctly represents this scenario, as it shows the consumer's budget constraint when limited to purchasing exactly 50 gallons of gas, with the rest of their budget allocated to other goods.