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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.

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