The endowment point is the consumption bundle in which
A) first-period consumption is equal to zero.
B) second-period consumption is equal to zero.
C) the consumer finds the most utility.
D) consumption is equal to disposable income in each period.
E) consumption is equal to savings in each period.

Question

Quizplus · Accepted Answer

The endowment point is where the consumer's consumption equals their disposable income in each period, meaning they neither save nor borrow.

The Endowment Point Is the Consumption Bundle in Which