The budget line shows the boundary between those combinations of goods and services that: A)...
Question:
The budget line shows the boundary between those combinations of goods and services that:
A) have positive marginal utility and those that have negative marginal utility.
B) are available and those that are unavailable.
C) are desirable and those that are undesirable.
D) are affordable and those that are unaffordable.
E) are normal goods and those that are inferior goods.
Budget Line:
The budget line is used to understand how a person works under a budgetary constraint. The budget line is important as it reveals how a person works when the amount available to spend is scarce.
Answer and Explanation: 1
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View this answerThe correct option is D) are affordable and those that are unaffordable.
The budget line shows all those combinations of two goods that can be...
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Budget Lines & the Rate of Transformation in Economics
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Chapter 3 / Lesson 11
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In economics, the rate of transformation model can be used to visualize the concept of budget constraints. Learn more about budget constraints, budgets lines, the rate of transformation curve, and how to maximize the utility of the concepts.
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