Budget lines are drawn on a diagram with the
A) quantity of one good on the vertical axis and the quantity of another good on the horizontal axis.
B) price of the good on the vertical axis and its quantity on the horizontal axis.
C) price of one good on the vertical axis and the price of another good on the horizontal axis.
D) quantity of the good on the vertical axis and its price on the horizontal axis.

Question

Quizplus · Accepted Answer

Budget lines are represented on a graph with the quantity of one good plotted on one axis (usually the vertical axis) and the quantity of another good on the other axis (usually the horizontal axis). This illustrates the trade-offs and opportunity costs a consumer faces given their budget constraints and the prices of the goods.

Budget Lines Are Drawn on a Diagram with the