Figure 21-2 The downward-sloping line on the figure represents a consumer's budget
constraint.
-Refer to Figure 21-2. A consumer who chooses to spend all of her income could be at which point(s) on the figure?
A)V only
B)Z only
C)V, W, X, or Y only
D)W, X, or Y only

Question

Figure 21-2 The downward-sloping line on the figure represents a consumer's budget
constraint. 
-Refer to Figure 21-2. A consumer who chooses to spend all of her income could be at which point(s) on the figure?
A)V only 
B)Z only 
C)V, W, X, or Y only 
D)W, X, or Y only

Quizplus · Accepted Answer

A consumer who chooses to spend all of her income would be at a point on the budget constraint line. Points V and Z are not on the budget constraint line, so they are not possible choices. Points W, X, and Y are all possible choices for a consumer who spends all of her income, as they all lie on the budget constraint line. Therefore, the best choice is D.

Figure 21-2 the Downward-Sloping Line on the Figure Represents a Consumer's