In order to draw an individual's budget line, we must know
A) prices and income.
B) income and preferences.
C) prices, income and preferences.
D) prices and preferences.

Question

Quizplus · Accepted Answer

To draw an individual's budget line, we need to know the prices of the goods and the individual's income. The budget line represents all the combinations of goods and services that a person can afford given their income and the prices of goods, without considering their preferences.

In Order to Draw an Individual's Budget Line, We Must