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A line showing every combination of two goods that exhausts a consumer's money is a:
ADemand curve
BSupply schedule
CIndifference map
DBudget constraint
Answer & Solution
Correct answer: D. Budget constraint
1. A consumer's choices are limited by how much money is available.
2. Each point on the budget constraint represents a combination of two goods whose total cost adds up to the consumer's budget.
3. In the worked example that budget is 10 dollars spent on burgers and bus tickets.
4. Points beyond the line are unaffordable and points inside it leave money unspent.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 2 'Choice in a World of Scarcity', sections 2.1-2.3_
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