Which of the following is correct for the Irish economy?

Which of the following statements is true?

A) A budget constraint is the same for a consumer at all levels of income. B) A budget constraint is a function of the income of the consumer and not the prices of the goods and services available for consumption. C) A budget constraint quantifies the trade-offs that economic agents face while making decisions. D) A budget constraint is based on the minimum amount of money that an economic agent can spend on goods and services.

Changes in relative prices create substitution effects

a. True b. False Indicate whether the statement is true or false