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

Question

Quizplus · Accepted Answer

A budget constraint shows the various combinations of goods and services that a consumer can purchase with a given income level. It is a line that represents the maximum amount of goods and services that can be purchased with a limited amount of income, given the prices of those goods and services.

A Budget Constraint Is