Refer to Figure 6.1. Tom's budget constraint is AC. His choice set includes all points

A) to the right of budget constraint AC.
B) bounded by the area OAC.
C) along budget constraint AC.
D) along the vertical and horizontal axes.

Budget Constraint

The limits imposed on household choices by income, wealth, and product prices.

Choice Set

The collection of all possible options available for selection by a decision-maker.

Leftover Income

The amount of income that remains after all necessary expenses, such as bills and living costs, have been paid.