The budget line is a(n):
A) convex curve.
B) vertical line.
C) concave curve.
D) downward-sloping straight line.
E) upward-sloping straight line.

Question

Quizplus · Accepted Answer

The budget line shows all the possible combinations of two goods that can be purchased assuming that the entire budget is spent. Therefore, it represents a downward-sloping straight line since the price of one good is measured on the x-axis and the price of the other good is measured on the y-axis.

The Budget Line Is A(n)