Question

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.

Answer 1

Answer:

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