Assertion (A): A budget line is a straight line.
Reason (R): The consumer's tastes do not change along the budget line.

Both A and R are true, and R is the correct explanation of A.Correct answerYour answerBoth A and R are true, but R is not the correct explanation of A.Correct answerYour answerA is true, but R is false.Correct answerYour answerA is false, but R is true.Correct answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

A is true: with fixed prices, the trade-off between the goods is the same everywhere on the line.
R is not about the budget line at all: the line depends only on income and prices. So R does not explain A.

Worth noting

The reason the line is straight is that prices are fixed whatever quantity is bought.

Concept: Why the budget line is straight
Typical timeTypical: 100 s
Your timeYours: —

The rule this testsBudget set and budget line

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Ten questions from Budget Line & Optimal Choice, at your own pace.

Assertion (A): A budget line is a straight line.Reason (R): The consumer's tastes do not change along the budget line.

Explanation

Assertion (A): A budget line is a straight line.
Reason (R): The consumer's tastes do not change along the budget line.