In moving along a given budget line:

A. the prices of both products and money income are assumed to be constant.
B. each point on the line will be equally satisfactory to consumers.
C. money income varies, but the prices of the two goods are constant.
D. the prices of both products are assumed to vary, but money income is constant.

Respuesta :

Answer:

The correct answer is option A.

Explanation:

A budget line shows the maximum possible bundles or combinations of two goods that can be purchased by completely exhausting the given income. All the points on the budget line show attainable and efficient bundles. The points below the budget line represent inefficient but attainable bundles. Those points that are above the line show unattainable bundles as they require higher income.  

A movement on the same budget line shows the change in the quantity of two goods. The price of the products and income of the consumer will remain the same.