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

Question

Quizplus · Accepted Answer

The endowment point refers to the situation where consumption equals disposable income in each period, meaning individuals consume exactly what they earn or receive, without borrowing or saving.

The Endowment Point Is the Consumption Bundle in Which