Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Micro Economics: Theory of Consumer behaviour

Question:

Budget line can be drawn if which of the following information is available?

Options:

Income of the consumer

Prices of the two concerned goods

Income of the consumer and prices of two concerned goods

Price of any one concerned good

Correct Answer:

Income of the consumer and prices of two concerned goods

Explanation:

The correct option is: Income of the consumer and prices of two concerned goods

The budget line represents the combinations of two goods that a consumer can afford given their income and the prices of the two goods. Therefore, both the income of the consumer and the prices of the two concerned goods are necessary to draw a budget line.