In the context of consumer theory, the budget line represents:
A. Combinations of goods that give the same utility
B. Combinations of inputs that give the same output
C. Combinations of prices that maximise profit
D. Combinations of goods that can be purchased with a given income and prices
Answer: Option D
Solution (By JKSSB Mock Tests)
The budget line shows all possible combinations of two goods that a consumer can afford given his money income and the prices of the goods.
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