Refer to Exhibit 4. A consumer has €100 to spend on socks and belts. If each belt costs €10 and each pair of socks costs €5, which point on the graph represents the bundle the consumer will purchase?

Explanation

Given the consumer's budget of €100, with belts priced at €10 and socks at €5, the combination shown at point Z fits within the budget and represents the optimal purchase choice. Points X and Y do not align with the budget constraint, and the graph provides sufficient information to determine the optimal bundle.