A consumer's best affordable point occurs
A)inside the budget line.
B)outside the budget line.
C)on the budget line.
D)at a point that cannot be determined.
E)at a corner on the budget line,with only one good consumed.

Question

Quizplus · Accepted Answer

The best affordable point for a consumer occurs on the budget line. This is because every point on the budget line represents a combination of goods that can be purchased using all of the available income. Any point inside the budget line would be affordable, but not the most preferred combination of goods, while any point outside the budget line would be unaffordable. Therefore, the consumer's best affordable point occurs on the budget line.

A Consumer's Best Affordable Point Occurs