The red circle represents all the car owners that own car A. The red circle is made up of region w and region x. The blue circle represents all the car owners that own car B. The blue circle is made up of region x and region y. So you see that region x is part of both circle A and B. Region w is part of circle A but it is NOT part of circle B. Region y is part of circle B but it is NOT part of circle A. Therefore Region x represents the 50 car owners that own both cars A and B. Region w represents the car owners that own car A but DO NOT own car B. Region y represents the car owners that own car B but DO NOT own car A. Region z (the area outside the circles but inside the rectangle. Region z represents the car owners that DO NOT own car A and also DO NOT own car B. Therefore we will put the number 50 for region x, since 50 own both car A and car B.We are told that 400 owned car A, and the region that contains 50 is part of circle A, so the remaining 400-50=350 that are in circle A go in region w, so we put 350 in region w: We are told that 200 owned car B, and the region that contains 50 is part of circle B, so the remaining 200-50=150 that are in circle B go in region y, so we put 150 in region y: Now we see that something is wrong, because we were told that there were only 500 car owners investigated and we already have 350+50+150 = 550. So the data we are given is contradictory. Edwin