Economics 9708 · AS & A Level · Indifference curves and budget lines

Indifference curves and budget lines — practice question

Which statement concerning a budget line in consumer behaviour theory is correct?

  • AIt illustrates consumer preference between two goods.
  • BIt illustrates combinations of two goods that consumers are able to purchase with a given income.
  • CIt illustrates the least cost combination of goods that yield the same level of utility.
  • DIt illustrates the income effect of a price change.

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