Choices that do not exhaust the consumer's budget lie to the ______ of the budget line.
A) southwest
B) northeast
C) northwest
D) southeast

Question

Quizplus · Accepted Answer

The southwest direction of the budget line represents all the combinations of goods that are affordable and do not exhaust the consumer's budget. Points on the budget line or northeast of it are not affordable, while points to the northwest are affordable but exhaust the budget. Therefore, choice A is the correct answer.

Choices That Do Not Exhaust the Consumer's Budget Lie to the ______