Assume That a Consumer Spends a Given Budget on Only

question 26

Multiple Choice

Assume that a consumer spends a given budget on only two goods, and that the prices of the two goods are constant. The budget line in this case would:

• A) Definitely be a straight downward-sloping line
• B) Possibly be a straight upward-sloping line
• C) Be a curved graph bowed outwards
• D) Be a curved bell-shaped graph