The budget line illustrates the consumer's opportunities and the indifference curve illustrates the consumer's preference.

Question

Quizplus · Accepted Answer

The budget line shows the different combinations of two goods that a consumer can afford given their income and the prices of the goods. The indifference curve shows the different combinations of two goods that a consumer considers to be equally desirable or "indifferent."

The Budget Line Illustrates the Consumer's Opportunities and the Indifference