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Given that income is $300, the price of good Y is $15, and the price of good X is $20. What is the vertical intercept of the budget line?
Given that income is $300, the price of good Y is $15, and the price of good X is $20. What is the vertical intercept of the budget line?
A. 4500
B. 300
C. 20
D. 15
I might be able to guess at this, or at least narrow down the possible answers, but I want to understand this information, so I can perform it on the test. Please explain your answer.