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Identify a budget line. a. Point A b. Point B c. Point C. d. Point D....

Ex1 QS3 Q1.png

Identify a budget line.

a. Point A
b. Point B
c. Point C.
d. Point D.
e. Points A or B.
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Answer #1

Answer: A

Curves B,C and D represents the indifference curves. Indiffrence curves shows different combination of goods towards which a consumer is different ; when they lie on the same curve.

However a budget line is a straight line which in this case is A.

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