Moving along a budget line, the prices of both goods:
A) vary and the consumer's budget is held constant.
B) are held constant and the consumer's budget varies.
C) and the consumer's budget are held constant.
D) and the consumer's budget vary.

Question

Quizplus · Accepted Answer

When a consumer moves along a budget line, both the prices of goods and the consumer's budget are held constant. This allows the consumer to see the different combinations of goods that they can afford at those constant prices with their given budget.

Moving Along a Budget Line, the Prices of Both Goods