A budget constraint shows different bundles of goods that all:
A)yield the same total utility.
B)cost the same amount.
C)maximize an individual's utility.
D)maximize total utility at varying levels of income.

Question

Quizplus · Accepted Answer

A budget constraint represents all the combinations of goods and services that a consumer can afford given their income and the prices of goods, hence it shows different bundles that cost the same amount.

A Budget Constraint Shows Different Bundles of Goods That All