Home › Bihar Board Class 12 (Arts) › Economics › Theory of Consumer Behaviour › Why is a bundle below the budget line never the …
Why is a bundle below the budget line never the optimum?
AA better bundle lies on the line
BIt costs more than income
CIt sits on the highest curve
DIt gives no utility at all
Answer & Solution
Correct answer: A. A better bundle lies on the line
Some point on the line has more of at least one good and no less of the other, so it is preferred.
Related questions
For a price-inelastic good, a price rise causes expenditure to do what?A price rises and quantity falls by a larger percentage. What happens to expenditure on thExpenditure on a good equals which product?Why is demand for a particular variety of pulses likely more elastic than for food overallWhich kind of good typically has price inelastic demand?Which demand curve has elasticity of one at every point?A vertical demand curve is described as what?Elasticity on the part of a linear demand curve to the left of the midpoint is what?