Figure 21-5
(a)
(b)
-Refer to Figure 21-5. In graph (a), if income is equal to $200, then the price of good Y is
A)$3.
B)$5.
C)$7.
D)$10.

Name: Figure 21-5 (a) (b) -Refer to Figure 21-5. In graph (a), if income is equal to $200, then the price of good Y is A)$3. B)$5. C)$7. D)$10.
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Question

Figure 21-5
(a)
(b)  
-Refer to Figure 21-5. In graph (a), if income is equal to $200, then the price of good Y is
A)$3. 
B)$5. 
C)$7. 
D)$10.

Quizplus · Accepted Answer

The price of good Y can be determined by the budget constraint equation. If income is $200 and the budget line intersects the Y-axis at 40 units, then the price of good Y is $200/40 = $5.