Asked by Potenza Building Mtrl on May 05, 2024
Verified
In drawing a particular budget line, money income and the prices of the two products are fixed.
Budget Line
A graphical depiction of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.
Money Income
The total amount of monetary earnings received by an individual or household, including wages, salaries, and investment returns.
Fixed
Relates to assets or costs that do not change with the level of production or business activity in the short term.
- Investigate the repercussions of income and price adjustments on a consumer's budget allocation and choice preferences.
Verified Answer
CS
CAITLYN STANKOVICMay 07, 2024
Final Answer :
True
Explanation :
In economics, a budget line represents the combinations of two goods a consumer can purchase with a given money income, assuming the prices of the two goods are fixed.
Learning Objectives
- Investigate the repercussions of income and price adjustments on a consumer's budget allocation and choice preferences.