A budget line connects the combinations of two goods that exhaust a consumer's budget.

Name: A budget line connects the combinations of two goods that exhaust a consumer's budget.
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Question

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This statement is true. A budget line shows all the combinations of two goods that a consumer can afford, given their income and the prices of the goods. The line represents all the points where the total expenditure of the consumer is equal to their income.

A Budget Line Connects the Combinations of Two Goods That