Which of the following shows the feasible combinations of two goods that a consumer could afford given her money income?
A) The budget constraint
B) The indifference map
C) The income consumption curve
D) The price consumption curve

Question

Quizplus · Accepted Answer

The budget constraint shows all the affordable combinations of two goods given a consumer's income and the prices of the goods. The indifference map shows the consumer's preferences, not affordability. The income consumption curve and price consumption curve relate changes in income or prices to changes in quantity demanded, but do not directly show affordability.

Which of the Following Shows the Feasible Combinations of Two