Commerce Exam > Commerce Questions > A budget constraint line is a result of?a)Mar...
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A budget constraint line is a result of?
- a)Market price of commodity X
- b)Market price of commodity Y
- c)Income of the consumer
- d)All of above
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
A budget constraint line is a result of?a)Market price of commodity Xb...
Explanation:
A budget constraint line is a graphical representation of the various combinations of two goods that a consumer can afford, given his/her income and the prices of the goods. It is also called a budget line or a price line.
The budget constraint line is a result of the market price of commodity X, which is one of the two goods that the consumer is considering purchasing. The market price of commodity Y is also a factor in determining the slope of the budget constraint line, but it is not the result of the line.
The income of the consumer is also an important factor in determining the position of the budget constraint line on the graph. The higher the income, the further out the line will be from the origin, indicating that the consumer can afford to purchase more of both goods.
However, the income of the consumer is not the result of the budget constraint line. It is simply a factor that is taken into account when drawing the line.
In summary, the budget constraint line is a result of the market price of commodity X, and to a lesser extent, the market price of commodity Y. The income of the consumer is a factor that is taken into account when drawing the line, but it is not the result of the line itself.
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Explanation:
A budget constraint line is a graphical representation of the various combinations of two goods that a consumer can afford, given his/her income and the prices of the goods. It is also called a budget line or a price line.
The budget constraint line is a result of the market price of commodity X, which is one of the two goods that the consumer is considering purchasing. The market price of commodity Y is also a factor in determining the slope of the budget constraint line, but it is not the result of the line.
The income of the consumer is also an important factor in determining the position of the budget constraint line on the graph. The higher the income, the further out the line will be from the origin, indicating that the consumer can afford to purchase more of both goods.
However, the income of the consumer is not the result of the budget constraint line. It is simply a factor that is taken into account when drawing the line.
In summary, the budget constraint line is a result of the market price of commodity X, and to a lesser extent, the market price of commodity Y. The income of the consumer is a factor that is taken into account when drawing the line, but it is not the result of the line itself.
HTML:
Explanation:
- A budget constraint line is a graphical representation of the various combinations of two goods that a consumer can afford, given his/her income and the prices of the goods. It is also called a budget line or a price line.
- The budget constraint line is a result of the market price of commodity X, which is one of the two goods that the consumer is considering purchasing. The market price of commodity Y is also a factor in determining the slope of the budget constraint line, but it is not the result of the line.
- The income of the consumer is also an important factor in determining the position of the budget constraint line on the graph. The higher the income, the further out the line will be from the origin, indicating that the consumer can afford to purchase more of both goods.
- However, the income of the consumer is not the result of the budget constraint line. It is simply a factor that is taken into account when drawing the line.
- In summary, the budget constraint line is a result of the market price of commodity X, and to a lesser extent, the market price of commodity Y. The income of the consumer is a factor that is taken into account when drawing the line, but it is not the result of the line itself.
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A budget constraint line is a result of?a)Market price of commodity Xb...
A budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. Consumer theory uses the concepts of a budget constraint and a preference map to analyze consumer choices.
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A budget constraint line is a result of?a)Market price of commodity Xb)Market price of commodity Yc)Income of the consumerd)All of aboveCorrect answer is option 'A'. Can you explain this answer? for Commerce 2025 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about A budget constraint line is a result of?a)Market price of commodity Xb)Market price of commodity Yc)Income of the consumerd)All of aboveCorrect answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A budget constraint line is a result of?a)Market price of commodity Xb)Market price of commodity Yc)Income of the consumerd)All of aboveCorrect answer is option 'A'. Can you explain this answer?.
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