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In the worked budget constraint example, the consumer's total budget is:
A1 dollar
B100 dollars
C1000 dollars
D10 dollars
Answer & Solution
Correct answer: D. 10 dollars
1. The example uses a deliberately small budget so the arithmetic stays simple.
2. Each point on the budget constraint represents a combination of burgers and bus tickets.
3. Their total cost adds up to the consumer's budget of 10 dollars.
4. Every affordable combination therefore has to fit inside that figure.
5. Larger budgets would shift the whole line outward without changing its meaning.
_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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