Economics JAMB

A line in commodity space which shows the constraints imposed by his budget; his money income and the price of goods purchased is?

A. supply curve
B. liquidity preference
C. Budget line
D. demand curve

Correct Answer:

Option C – Budget line

Explanation

The Budget Line, also called as Budget Constraint shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level.

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