The alternative combinations of two goods that a consumer can purchase with a specific money income is shown by
A) a production possibilities curve.
B) a demand curve.
C) a consumer expenditure line.
D) a budget line.

Question

Quizplus · Accepted Answer

The budget line, also known as the budget constraint, shows all the possible combinations of two goods that a consumer can purchase given their specific money income and the prices of the two goods. It is formed by plotting the budget or income on the vertical axis and the prices of the two goods on the horizontal axis. Therefore, the correct answer is D) a budget line.

The Alternative Combinations of Two Goods That a Consumer Can