The horizontal intercept of the budget line is: A) -P_X/P_Y. B) M/P_X. C) M/P_Y. D) P_YY.

Question

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The horizontal intercept of the budget line represents the maximum amount of good X that can be purchased with a given budget (M) if all money is spent on good X, calculated as M divided by the price of good X (Px). Option B correctly represents this calculation, where M is the budget and P_X. represents the price of good X in a simplified notation.

The Horizontal Intercept of the Budget Line Is