All points below the budget line are
A) inferior to every point on the budget line.
B) preferred to every point on the budget line.
C) affordable.
D) Answers A and C are correct.

Question

Quizplus · Accepted Answer

All points below the budget line represent affordable options, but they may or may not be preferred to points on the budget line or above it. Points above the budget line are not affordable with the given budget constraint. Therefore, the correct answer is C.

All Points Below the Budget Line Are