In moving along a given budget line,
A)the prices of both products and money income are assumed to be constant.
B)each point on the line will be equally satisfactory to consumers.
C)money income varies, but the prices of the two goods are constant.
D)the prices of both products are assumed to vary, but money income is constant.

Question

Quizplus · Accepted Answer

The budget line represents combinations of two goods that a consumer can purchase with a given income at specific prices. Moving along a budget line implies that the consumer's income and the prices of both goods remain constant, but the combination of goods purchased varies.

In Moving Along a Given Budget Line