Question

The budget constraint of a consumer shows the maximum amount of each product that a consumer can afford.

Ture or False?

Answer 1

the given statement is true in this is because budget constraint is usually represented on a graph with two Axis where when one intercept is zero it represents the maximum amount of other good you can purchase at your budget and for instance consider two goods apple and orange and you plot it on a budget curve with the budget constraint it gives your income and the price of apple and orange where when you consume 0 oranges at the budget you can get the maximum amount of Apples that can be consumed.

Therefore (True) is the answer to this question