The graph of the budget line below has dollars on the vertical axis and food on the horizontal axis. Which statement is false?D100 FoodThe vertical intercept represents all money available for purchasing.The distance OA shows the amount of money spent on OD amount of food.If the amount of money available is known in this graph, then the absolute and relative price of food is known also.The horizontal intercept represents all the food the consumer could purchase with the budget available.

Budget line is the representation of the budget sets which represents all the combinations of goods…

The graph of the budget line below has dollars on the vertical axis and food on the horizontal axis. Which statement is false? D 100 Food The vertical intercept represents all money available for purchasing. The distance Of sheo

The graph of the budget line below has dollars on the vertical axis and food on the horizontal axis. Which statement is false? D 100 Food The vertical intercept represents all money available for purchasing. The distance Of sheo

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The graph of the budget line below has dollars on the vertical axis and food on the horizontal axis. Which statement is false?
D
100 Food
The vertical intercept represents all money available for purchasing.
The distance OA shows the amount of money spent on OD amount of food.
If the amount of money available is known in this graph, then the absolute and relative price of food is known also.
The horizontal intercept represents all the food the consumer could purchase with the budget available.

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