A budget line shows the

a. quantities of consumption that maximizes marginal utility.

b. relationship between price and quantity demanded.

c. quantities of goods a buyer can purchase with given income and prices.

d. total utility a consumer realizes from consuming different quantities of a good.

e. the prices of the two goods a buyer can purchase.

Question

Business

Henry Joseph

6 October, 21:10

A budget line shows the

a. quantities of consumption that maximizes marginal utility.

b. relationship between price and quantity demanded.

c. quantities of goods a buyer can purchase with given income and prices.

d. total utility a consumer realizes from consuming different quantities of a good.

e. the prices of the two goods a buyer can purchase.

+4

Answers (1)

Know the Answer?

Deon Arellano · Answer 1

Answer: A budget line shows the quantities of goods a buyer can purchase with given income and prices.

Explanation: A budget line also known as a budget constraint can be defined as the value of exports to import (for a state) or the value of expenditure to income (for an individual).

It basically explains the summary of intended expenditure with the capital and the prices.