Practicing Success
Budget line can be drawn if which of the following information is available? |
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 |
Income of the consumer and prices of two concerned goods |
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. |