Suppose there are two goods,X and Y,with X being measured on the horizontal axis and Y being measured on the vertical axis.The budget line connecting these two goods does not:
A) show all the possible combinations of X and Y a consumer can buy given the level of income and prices.
B) have a positive slope.
C) have a slope that reflects the trade-off of one good for another.
D) reflect the assumption of continuous divisibility if drawn as a straight line.
Correct Answer:
Verified
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