Question

The budget line shows

A. the amount of product X that a consumer is willing to give up to obtain one more unit of product Y.
B. all possible combinations of two goods that can be purchased, given money income and the prices of the goods.
C.the minimum amount of two goods that a consumer can purchase with a specific money income.
D.all possible combinations of two goods that yield the same level of utility to the consumer.

Answer 1

A budget constraint (or budget line) shows the possible combinations of affordable goods given a consumer's limited income.

Step-by-step explanation:

A budget constraint (or budget line) shows the possible combinations of two goods that are affordable given a consumer's limited income. It represents the trade-offs a consumer must make in order to purchase different quantities of two goods, given their prices and the consumer's income. The budget constraint is usually represented graphically as a straight line that shows all the affordable combinations of the two goods.