A budget line shows the
A) limits to production possibilities.
B) limits to production opportunities.
C) slope of the demand curve.
D) limits to consumption possibilities.
E) way the demand curve shifts if the consumer's budget changes.

Question

Quizplus · Accepted Answer

A budget line illustrates the various combinations of goods and services that a consumer can afford to purchase given their income and the prices of goods in the market. Therefore, a budget line shows the limits to consumption possibilities.

A Budget Line Shows the