A consumer's consumption possibilities include all points on the budget line as well as all points below the budget line.

Name: A consumer's consumption possibilities include all points on the budget line as well as all points below the budget line.
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Question

Quizplus · Accepted Answer

A budget line represents the combination of two goods that a consumer can afford at a given price level and income. All points on or below the budget line are consumption possibilities for the consumer. Therefore, the statement is true.

A Consumer's Consumption Possibilities Include All Points on the Budget