A budget line shows all of the consumption bundles that just exhaust a consumer's income. Rationed Good When the demand for a good exceeds the supply at the prevailing price, and the government or a supplier limits the amount that each consumer can purchase, we say that the good is rationed.
Question: The "budget Line" Shows: Question 11 Options: The Amount Of Product A Which A Consumer Is Willing To Give Up In Order To Obtain One More Unit Of Product B. All Possible Combinations Of Two Goods Which Can Be Purchased,given Money Income And The Prices Of The Goods. All Equilibrium Points On An Indifference Map.
a consumers budget line shows all the combinations of two goods that exhaust the budget. Budget Set. a consumers budget set is the set of affordable combinations of two goods. the budget set includes the budget line-combinations that exhaust the budget-as well as combinations that cost less than the consumer has to spend, leaving the consumer ...
Budget Line: The budget line is an important element analysis of consumer behavior. The indifference map shows people’s preferences for the combination of two goods. The actual choices they will make, however, depends on their income. The budget line is drawn as a continuous line.
Budget Constraint all possible combinations of goods and services that can be attained given current prices and limited income Budget Line a graphical representation of a consumers budget constraint Price Ratio the slope of the budget line, represents the price of x in terms of good y Size Effect
Budget Line Definition: The Budget Line, also called as Budget Constraint shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level.
The budget line is an elementary concept that most consumers understand intuitively without a need for graphs and equations -- it's the household budget, for example. Taken informally, the budget line describes the boundary of affordability for a given budget and specific goods.
The Budget Line Shows: (Correct Answer Below) The Budget Line Shows: Front. Reveal the answer to this question whenever you are ready. D) all possible combinations of two goods that can be purchased, given money income and the prices of the goods. Enter another question to find a notecard:
budget line: A graphical depiction of the various combinations of two selected products that a consumer can afford at specified prices for the products given their particular income level. When a typical business is analyzing a two product budget line, the amounts of the first product are plotted on the horizontal X axis and the amounts of the ...
ADVERTISEMENTS: Read this article to learn about the slope and shift of the budget line! So far, we have discussed different combinations of two goods that provide same level of satisfaction. But, which combination, will a consumer actually purchase, depends upon his income (‘consumer budget’) and prices of the two commodities.