A consumer who is below the personal budget line (rather than on it):

CA Foundation · Business Economics · MTP · September 2026
A consumer who is below the personal budget line (rather than on it):
(A) A. is not spending all personal income
(B) B. is spending all personal income
(C) C. may or may not be spending all personal income
(D) D. is in equilibrium

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. is not spending all personal income

Topics: Theory of Demand and Supply

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