Can the budget constraint (line) appear the same for two people that have differ
ID: 1219853 • Letter: C
Question
Can the budget constraint (line) appear the same for two people that have different preferences?
No. Each person’s preferences are subjective and may differ radically form another.
Yes. Even though they have different preferences, the indifference curves will look the same which causes the budget lines to look the same.
No. Because of diminishing marginal utility the budget lines must bow inward toward the origin.
Yes. Preferences do not affect the budget line.
a.No. Each person’s preferences are subjective and may differ radically form another.
b.Yes. Even though they have different preferences, the indifference curves will look the same which causes the budget lines to look the same.
c.No. Because of diminishing marginal utility the budget lines must bow inward toward the origin.
d.Yes. Preferences do not affect the budget line.
Explanation / Answer
Ans
D
because the budget line depend on P and Q
p1q1+p2q2=m
so there is no preferences in it.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.