The budget constraints shows the different possible combinations of goods that can be consumed at current prices and using all the consumer's income.

Question

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The statement is true. The budget constraint is a graphical representation of all the possible combinations of goods that can be purchased by a consumer given their income and the prices of the goods. It represents the boundary of the budget set, which includes all the combinations of goods that the consumer can afford at the given prices and income level.

The Budget Constraints Shows the Different Possible Combinations of Goods