Asked by Kiley Borowicz on May 14, 2024
Verified
A budget constraint illustrates the
A) prices that a consumer chooses to pay for products he consumes.
B) purchases made by consumers.
C) consumption bundles that a consumer can afford.
D) consumption bundles that give a consumer equal satisfaction.
Budget Constraint
A concept in economics that represents all possible consumption combinations of goods and services a consumer can afford with a given income and prices.
Consumption Bundles
A combination of goods and services that an individual or household consumes over a given period.
Consumer
An individual or group who purchases goods and services for personal use.
- Understand the concept of a budget constraint and how it is represented graphically.
Verified Answer
AH
Alexandra HernandezMay 15, 2024
Final Answer :
C
Explanation :
A budget constraint illustrates the consumption bundles that a consumer can afford given their income and the prices of goods. It shows the combination of goods and services that a consumer can purchase without exceeding their budget.
Learning Objectives
- Understand the concept of a budget constraint and how it is represented graphically.