The budget line shows
A)the amount of product A that a consumer is willing to give up to obtain one more unit of product B.
B)all possible combinations of two goods that can be purchased, given money income and the prices of the goods.
C)all equilibrium points on an indifference map.
D)all possible combinations of two goods that yield the same level of utility to the consumer.

Question

Quizplus · Accepted Answer

The budget line represents all possible combinations of two goods that a consumer can purchase with their given income and the prices of those goods. It reflects the trade-offs a consumer can make between two products while spending their entire budget.

The Budget Line Shows