question archive Any combination of goods lying outside of the budget line: implies that the consumer is not spending all his income
Any combination of goods lying outside of the budget line: implies that the consumer is not spending all his income
Subject:EconomicsPrice:2.85 Bought3
Any combination of goods lying outside of the budget line:
implies that the consumer is not spending all his income.
yields less utility than any point on the budget line.
yields less utility than any point inside the budget line.
is unattainable, given the consumer's income.
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Suppose you have money income of $10, all of which you spend on Coke and popcorn. In the diagram, the prices of Coke and popcorn respectively are:
$.50 and $1.00.
$1.00 and $.50.
$1.00 and $2.00.
$.40 and $.50.
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Any combination of goods lying outside of the budget line:is unattianable, given the income of the consumer. A consumer cannot afford the goods outside his budget constraint.
$1.00 and $.50.
The price of coke is one, that is why consumer is able to buy 10 cokes when he spends all his income, that is $10 on coke and buys 20 popcorns of $0.50 each.
