A consumer who doesn't spend all of her income:
A)would be at a point inside her budget constraint
B)would not be consuming positive quantities of all goods
C)must be consuming at a point where her budget constraint touches one of the axes
D)would be at a point outside of her budget constraint

Question

Quizplus · Accepted Answer

If a consumer doesn't spend all of her income, then she must be consuming less than what she can afford. Thus, she would be at a point inside her budget constraint.

A Consumer Who Doesn't Spend All of Her Income