Question

All possible combinations of goods that a consumer can buy can be shown by budget line, given ______

Options

• Quantity of commodity

• Expenditure of consumer

• Quality of commodity

• Price of commodity

Answer 1

All possible combinations of goods that a consumer can buy can be shown by budget line, given the Expenditure of consumer.

Explanation:

The budget line displays all of the good combinations that a consumer can purchase with the given income and commodity price. The budget line's assumptions are income and consumer prices, which remain unchanged.