A budget line shows the Multiple Choice alternative combinations of two goods that will yield the same level of total utility to a consumer. quantities of a particular good that a consumer will buy at various prices. ratio of money income to product price. alternative combinations of two goods that a consumer can purchase with a given money income.

Question

Taniya Chandler

Business

1 October, 05:03

A budget line shows the Multiple Choice alternative combinations of two goods that will yield the same level of total utility to a consumer. quantities of a particular good that a consumer will buy at various prices. ratio of money income to product price. alternative combinations of two goods that a consumer can purchase with a given money income.

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Answers (1)

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Braedon Abbott · Answer 1

Option (d) is correct.

Explanation:

A budget line is a graphical representation which shows the combination of two goods that are to be purchased by the consumer with his available income. A budget line also known as the budget constraint.

The budget line is represented by the following equation:

Suppose that there are two goods: A and B.

(Price of good A * Quantity of good A) + (Price of good B * Quantity of good B) = Income of the consumer