A graphical representation of the limit of all combinations of goods and services that a consumer can afford given her income and prices of the goods she wishes to buy is:
A) a demand curve.
B) a supply curve.
C) an optimization constraint line.
D) a budget constraint line.

Question

Quizplus · Accepted Answer

A budget constraint line represents all the combinations of goods and services that a consumer can afford given their income and the prices of the goods, illustrating the trade-offs a consumer faces in their purchasing decisions.

A Graphical Representation of the Limit of All Combinations of Goods