Question

A point or product- combination to the left of (or inside) a budget line

1) is attainable, but a combination or point to the right of the line is unattainable.
2)is attainable, but a combination or point to the right of the line is attainable.
3) coast more than a combination or point on the budget line.
4) coast more than a combination or point outside the budget line.

Answer 1

The budget constraint (or budget line) shows affordable combinations of goods given a consumer's limited income.

Step-by-step explanation:

The subject of this question is Economics. The concept being discussed is the budget constraint, also known as the budget line. The budget constraint shows the possible combinations of two goods that are affordable given a consumer's limited income.

If a point or product combination is to the left of the budget line, it is attainable. This means that the consumer can afford to purchase that combination of goods. On the other hand, if a combination or point is to the right of the budget line, it is unattainable as it is beyond the consumer's budget.

In terms of cost, a combination or point to the left of the budget line will cost less than a combination or point on the budget line. This is because the consumer is able to purchase more of both goods without exceeding their budget.