The budget constraint line shows the maximum allowable combination of goods that are:
A) inventoried.
B) produced.
C) sold.
D) purchased.

Question

Quizplus · Accepted Answer

The budget constraint line represents the combinations of goods and services that a consumer can purchase given their income and the prices of the goods. It shows the limit on the consumption bundle that the consumer can afford.

The Budget Constraint Line Shows the Maximum Allowable Combination of Goods