Which of the following factors is not one of the determinants of a household's budget constraint?
A) consumer's preferences
B) income
C) wealth
D) prices

Question

Quizplus · Accepted Answer

Consumer's preferences are not one of the determinants of a household's budget constraint. The budget constraint defines the set of goods and services that a household can afford given its income, wealth, and the prices of goods and services in the market. The consumer's preferences determine the optimal bundle of goods and services within the budget constraint, but they do not affect the budget constraint itself.

Which of the Following Factors Is Not One of the Determinants