The combinations of goods X and Y that are affordable to the consumer are defined by the:
A) consumption set.
B) income line.
C) budget constraint.
D) budget set.

Question

Quizplus · Accepted Answer

The budget set is defined by the combinations of goods that the consumer can afford with their given income and the prices of X and Y. Therefore, D is the correct answer as it represents the budget set. The consumption set, income line, and budget constraint are related concepts but do not accurately describe the set of affordable options.

The Combinations of Goods X and Y That Are Affordable