Asked by Fantasia Jessie on Jun 22, 2024

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The limited money income of consumers results in a so-called budget constraint.

Budget Constraint

The limit that the size of a consumer’s income (and the prices that must be paid for goods and services) imposes on the ability of that consumer to obtain goods and services.

Money Income

The total amount of monetary earnings received by an individual or household over a certain period of time, before taxes and deductions.

  • Grasp the significance of budget constraints in consumer choice.
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Benjamin PullenJun 29, 2024
Final Answer :
True
Explanation :
A budget constraint represents the combinations of goods and services a consumer can purchase with their limited income, reflecting the trade-offs they must make based on their financial limitations.