All of the points on a budget line result in combination of goods that expend all of her income.

Name: All of the points on a budget line result in combination of goods that expend all of her income.
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Question

Quizplus · Accepted Answer

A budget line represents all possible combinations of two goods that can be purchased given a specific income and prices for the goods. Therefore, all points on a budget line represent combinations of goods that exhaust the entire income of the consumer.

All of the Points on a Budget Line Result in Combination