Answer:
The correct answer is option C.
Explanation:
The budget line is also known as the budget constraint. It shows all the combinations of two goods that a consumer can afford to purchase with his limited income. All the points in the budget line different combinations of goods at which the cost of purchasing those goods is equal to consumer's total money income.
The consumer can not purchase the bundles above the budget line because their purchase cost is higher than his income. Though the consumer can purchase the bundles lying below the budget line but they represent allocative inefficiency.
