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

question 360

Multiple Choice

Figure 21-2 The downward-sloping line on the figure represents a consumer's budget
constraint.
-Refer to Figure 21-2. Which of the following statements is correct?

• A)Points W, X, and Y all cost the consumer the same amount of money.
• B)Point V is unaffordable for the consumer given his budget constraint.
• C)Point Z costs less than point V.
• D)Points W, X, and Y give the consumer the same level of satisfaction.

---

Definitions:

Deadweight Loss

A decline in economic efficiency resulting from the failure to achieve free market equilibrium for a good or service.

Total Revenue

The total amount of money a company generates from its business activities, often calculated by multiplying the price of goods or services by the quantity sold.

Policymaker

An individual or group responsible for making decisions and policies that affect a country's economy, society, or institution.

Deadweight Loss

The loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved due to market inefficiencies or interventions.