Question

The endpoints (horizontal and vertical intercepts) of the budget line: Group of answer choices represent the quantity of each good that could be purchased if all of the budget were allocated to that good. measure the rate at which one good can be substituted for another. measure its slope. indicate the highest level of satisfaction the consumer can achieve. measure the rate at which a consumer is willing to trade one good for another.

Answer 1

represent the quantity of each good that could be purchased if all of the budget were allocated to that good.

Step-by-step explanation:

The budget line is a graph which shows the two combinations of goods a consumer can consume given price and income level

Properties of the budget line

1. When income increases, the budget line shifts outward and shifts inward when income decreases
2. the horizontal and vertical intercepts represent the quantity of each good that could be purchased if all of the budget were allocated to that good.
3. the budget line is a straight line. This indicates that the marginal rate of substitution is constant
4. the budget line is negatively sloped