The budget line shows
A) the different combinations of two goods that a consumer can buy.
B) the quantity of a single good that a consumer is willing to buy at different prices.
C) the maximized utility from a good.
D) none of the above

Question

Quizplus · Accepted Answer

The budget line shows all the possible combinations of two goods that a consumer can buy given their budget constraint. It represents the limit of the consumer's purchasing power and shows the trade-offs between the two goods.

The Budget Line Shows