Question

What are the combinations to the right of the budget line?

1) Combinations that are unattainable given the consumer's budget and prices
2) Combinations that are attainable but less preferred than the combinations on the budget line
3) Combinations that are attainable and preferred to the combinations on the budget line
4) Combinations that are not affected by the consumer's budget and prices

Answer 1

The combinations to the right of the budget line include unattainable combinations, less preferred combinations, preferable combinations, and combinations unaffected by the budget and prices.

Step-by-step explanation:

The combinations to the right of the budget line are:

1. Combinations that are unattainable given the consumer's budget and prices.
2. Combinations that are attainable but less preferred than the combinations on the budget line.
3. Combinations that are attainable and preferred to the combinations on the budget line.
4. Combinations that are not affected by the consumer's budget and prices.

For example, if a consumer's budget only allows for a certain amount of goods, any combination that exceeds that budget will be unattainable. Similarly, if a consumer prefers a certain combination of goods, any combination that provides less of one good or more of the other will be less preferred than the combinations on the budget line.