For a consumer with an average income, the
Blank
______ is greater than for a consumer with a high income.

BlackTom题目解析

Question

For a consumer with an average income, the 
Blank
______ is greater than for a consumer with a high income.

BlackTom题目解析

BlackTom AI · Accepted Answer

Question restatement and options: For a consumer with an average income, the Blank ______ is greater than for a consumer with a high income.

Option 1: demand curve. The demand curve shows the relationship between the price of a good and the quantity demanded, holding other factors constant. It does not directly measure a constraint that differs by income level, so it is not the right term to fill the blank in a sentence about how income affects what a consumer can do.

Option 2: consumption function. This relationship links total consumption to income (and potentially other variables). While related to income, it describes how much is consumed rather than describing a constraint on choices. It does not capture the limiting budget that depends on income and prices, so it’s not the correct term here.

Option 3: production possibilities frontier. The production possibilities frontier (PPF) depicts trade-offs in an economy between two goods at the aggregate level, given available resources. It is not a consumer-specific constraint and thus not the appropriate term for a statement about individual budget limits based on income.

Option 4: budget constraint. The budget constraint represents the set of affordable combinations of goods a consumer can purchase given their income and prices. This directly reflects income changes: as income rises, the budget constraint shifts outward (it becomes larger), allowing more combinations to be affordable. Conversely, with a lower income (such as average versus high income in the prompt), the budget constraint would be smaller, not larger. The wording of the sentence implies a comparison of the constraint’s size across income levels, and the term that best captures this idea is the budget constraint. The other options describe relationships or constraints at a different level (demand, consumption, or production) and do not specify the income-based affordability limit in the same way.

In short, because the budget constraint is the concept that delineates the affordable set of bundles given income and prices, it is the term that logically fits the blank when discussing how income levels affect what a consumer can purchase. The other options describe related concepts (demand, consumption, production) but do not specify the income-driven affordability boundary that the budget constraint defines.

For a consumer with an average income, the Blank ______ is greater than for a consumer with a high income. BlackTom题目解析

View Explanation

Log in for full answers

Similar Questions

Why do people need to make economic choices?

Combinations to the left of the budget line are

[Continuation of question 13] If the price of food doubles to $2 per unit, the price of other goods remains at $1, and Tom's income increases to $150, would Tom still afford the original optimal basket of question 1 (x = 50 and y = 50)?

Lisa's optimal basket cannot be to the South West of her budget line

The budget line:

A decrease in income will shift the budget line to the left. BlackTom题目解析

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler