Which of the following is not relevant when calculating the budget line?
A)the price of good X
B)income
C)the price of good Y
D)preferences
E)the relative price of good X in terms of good Y

Question

Quizplus · Accepted Answer

Preferences do not directly affect the budget line, as it only considers the prices of goods and the consumer's income. Preferences may indirectly affect the budget line by influencing the consumer's decision on how much of each good to purchase.

Which of the Following Is Not Relevant When Calculating the Budget