A budget constraint is a line that is composed of:
A)all possible combinations of goods and services that maximize a consumer's total utility.
B)the additional utility gained from consuming all possible combinations of goods and services.
C)all possible combinations of goods and services that a consumer can buy with his or her income.
D)the total utility gained from consuming all possible combinations of goods and services with a certain income.

Question

Quizplus · Accepted Answer

A budget constraint represents all the combinations of goods and services that a consumer can afford to buy with a given income, factoring in the prices of those goods and services.

A Budget Constraint Is a Line That Is Composed Of