The Budget Constraint Cuts the Horizontal Axis at 12 Units

question 133

Multiple Choice

The budget constraint cuts the horizontal axis at 12 units of good X and it cuts the vertical axis at 20 units of good Y. If the price of good X is $20 and the price of good Y is $12, then what does income equal?

• A)$200
• B)$240
• C)$520
• D)$280
• E)There is not enough information to answer the question.

---

Definitions:

Thermometer

An instrument used to measure temperature, often utilized in medical settings to check body temperature.

Thermometer

An instrument designed to measure and indicate temperature.

Body Temperature

The measure of the body's ability to generate and get rid of heat, reflecting the balance between heat production and heat loss.

Net Loss

A situation in which a company's expenses exceed its revenues, resulting in a negative income for the accounting period.