Question 5 05 points G The choice of what mix of products to

Question 5 (0.5 points) G The choice of what mix of products to consume can be shown graphically using 1) indifference curves 2) budget contraints 3) indifference curves and budget constraints 4) none of the above. Save Question 6 (0.5 points)

Solution

Answer is 3. Indifference curve and budget constraints.

Explanation: The indifference curve shows the different combination of two goods that can be consumed to have the same level of satisfaction. however, Budget line describes the combination of goods which can be consumed given the limited income budget. So both the curves are required to come to the conclusion of which proportion of two goods to be consumed.