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Figure: Kristin's Budget Line
-(Figure: Kristin's Budget Line) Look at the figure Kristin's Budget Line. The price of a cup of cappuccino is $3, and the price of an apple is $1. Kristin's income is:
A) $50.
B) $120.
C) $60.
D) $20.

Question

Use the following to answer questions:
Figure: Kristin's Budget Line 
-(Figure: Kristin's Budget Line) Look at the figure Kristin's Budget Line. The price of a cup of cappuccino is $3, and the price of an apple is $1. Kristin's income is:
A) $50. 
B) $120. 
C) $60. 
D) $20.

Quizplus · Accepted Answer

Kristin's budget line represents the combinations of cappuccinos and apples she can buy with her income. If she spends all her income on cappuccinos, she can buy 20 ($60/$3) and if she spends all on apples, she can buy 60 ($60/$1), indicating her income is $60.

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