A point lying inside the budget line indicates:
A)an unattainable market basket for the consumer.
B)the consumer is not spending all of his or her income.
C)the consumer has exhausted his income on consumption.
D)that one of the goods consumed is an economic bad.

Question

Quizplus · Accepted Answer

A point inside the budget line indicates that the consumer is not utilizing all of their income, meaning they could still purchase more goods or services without exceeding their budget.

A Point Lying Inside the Budget Line Indicates