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SIZIF [17.4K]
3 years ago
6

Suppose that a consumer purchases just two goods, X and Y. The Y-intercept of the budget line in this case would indicate the

Mathematics
1 answer:
KiRa [710]3 years ago
7 0

Answer:

Y-intercept of the budget line would indicate the maximum quantity of good Y that the consumer can buy with the given income.

Step-by-step explanation:

Budget line is a graphical representation of the possible combinations of two goods X and Y which can be purchased with given income.

Its given that a consumer purchases just two goods, X and Y.

We need to tell that what does the Y-intercept of the budget line would indicate:

Solution:

Y-intercept of the budget line would indicate the maximum quantity of good Y that the consumer can buy with the given income.

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