Solved

The Endpoints (Horizontal and Vertical Intercepts) of the Budget Line

Question 33

Multiple Choice

The endpoints (horizontal and vertical intercepts) of the budget line:


A) measure its slope.
B) measure the rate at which one good can be substituted for another.
C) measure the rate at which a consumer is willing to trade one good for another.
D) represent the quantity of each good that could be purchased if all of the budget were allocated to that good.
E) indicate the highest level of satisfaction the consumer can achieve.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions