The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1

-The different combinations of any two goods that an individual can afford to purchase, given his income and prices, is shown by:
A)an indifference curve.
B)an indifference map.
C)a budget line.
D)a demand curve.
E)a supply curve.

Question

The below indifference map shows the various combinations of hours of music and apples that yield different levels of utility.Figure 7.1
 
-The different combinations of any two goods that an individual can afford to purchase, given his income and prices, is shown by:
A)an indifference curve. 
B)an indifference map. 
C)a budget line. 
D)a demand curve. 
E)a supply curve.

Quizplus · Accepted Answer

A budget line represents the different combinations of any two goods that an individual can afford to purchase, given his income and the prices of the goods. It shows the trade-off between the two goods within the consumer's budget constraints.

The Below Indifference Map Shows the Various Combinations of Hours