Question

A budget constraint is a straight line because:___________

Answer 1

Answer:

c) a consumer faces a fixed price of both goods that do not change with changes in consumption.

Explanation:

Budget constraint represents all the items or goods that a person purchases within his/her income.  

Budget constraint used in consumer theory to determine consumer choices. it represents that the total amount of goods that person purchases should lie below the personal income. Having the budget constraint line straight indicate that the price of  both the goods are the same and does not change according to the consumption