A point on the budget constraint represents the fact that the consumer spends less than her or his income.

Name: A point on the budget constraint represents the fact that the consumer spends less than her or his income.
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Question

Quizplus · Accepted Answer

A point on the budget constraint represents all the possible combinations of goods that a consumer can afford given their income and the prices of goods. It does not necessarily mean that the consumer spends less than their income.

A Point on the Budget Constraint Represents the Fact That