A budget constraint shows
A)the maximum utility that a consumer can achieve for a given level of income.
B)a series of bundles that cost the consumer the same amount of money.
C)a series of bundles that give the consumer the same level of utility.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

A budget constraint shows a series of bundles that cost the consumer the same amount of money. It represents the various combinations of goods and services that a consumer can afford given their income and the prices of goods and services. The budget constraint helps consumers make choices about how to allocate their limited income among different goods and services.

A Budget Constraint Shows