The consumption bundles that Miranda CAN afford but that do not use up her entire income lie _____ the budget line.
A) within
B) beyond
C) on
D) at the corner of

Question

Quizplus · Accepted Answer

The budget line represents all the possible combinations of two goods that a consumer can purchase given their income and the prices of the goods. Any consumption bundle that Miranda can afford without using up her entire income will fall within the budget line, as it represents the maximum amount of goods she can purchase with her given income at the given prices. Therefore, the correct choice is (A) within.

The Consumption Bundles That Miranda CAN Afford but That Do