Any combination of goods lying outside of the budget line: implies that the consumer is not spending all his income

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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.