What can we say about a consumer who doesn't spend all of her income
A)She is at a point outside of her budget constraint.
B)She is at a point inside her budget constraint.
C)She is not consuming positive quantities of all goods.
D)She is consuming at a point where her budget constraint touches one of the axes.

Question

Quizplus · Accepted Answer

A consumer who doesn't spend all of her income is at a point inside her budget constraint, as she has not utilized all her available resources.

What Can We Say About a Consumer Who Doesn't Spend