Graphically,the budget constraint can be described as:

Question

Quizplus · Accepted Answer

The budget constraint is a graph that shows the various combinations of two goods that a consumer can afford given their income and the prices of the goods. The line connecting these combinations represents the budget constraint. The slope of this line represents the opportunity cost of consuming one good in terms of the other. It is calculated by dividing the price of one good by the price of the other. Therefore, answer choices A, B, and D are incorrect. The correct answer is C, as the budget constraint is a downward sloping line.

Graphically,the Budget Constraint Can Be Described As