Any point on the budget constraint
A)Gives the consumer the highest level of utility.
B)Represent a combination of two goods that are affordable.
C)Represents combinations of two goods that yield the same utility.
D)Reflects the price of one good divided by the price of another good.

Question

Quizplus · Accepted Answer

Any point on the budget constraint represents a combination of two goods that are affordable, given the consumer's income and the prices of the goods. Therefore, option B is correct. Options A, C, and D are not accurate for defining the budget constraint.

Any Point on the Budget Constraint