A budget constraint:
A) must be convex to the origin if consumers prefer more to less.
B) will be upward-sloping if consumers consider one good a "bad."
C) must be downward-sloping if both goods have positive prices.
D) will be concave to the origin if the consumer's budget is fixed.
E) will always have slope equal to -1.

Question

Quizplus · Accepted Answer

Budget constraints are typically downward-sloping because if both goods have positive prices, to afford more of one good, a consumer must buy less of the other, assuming a fixed budget.

A Budget Constraint