Home » Points on a budget constraint represent combinations of the goods that exactly use up the household”s income, given market prices. 1

# Points on a budget constraint represent combinations of the goods that exactly use up the household”s income, given market prices. 1

A. Points on a budget constraint represent combinations of the goods that exactly use up the household”s income, given market prices. (2) Which of the following is an INCORRECT statement about a household”s budget constraint? A. Points on a budget constraint represent combinations of the goods that exactly use up the household”s income, given market prices. B. Points within the budget constraint represent combinations of the goods that do not use up all the household”s income, given market prices. C. If bundles A and B both lie on the budget constraint, we can deduce that the household is indifferent between the two bundles. D. If the price of one good decreased without any other changes, the budget constraint will swivel or rotate outward. E. The slope of the budget line is determined by the price of one good relative to the price of the other.

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