Budget Lines and Indifference Curves Started: Nov 15 at 9:43pm Quiz Instructions Flag question: Spacer Budget Lines and indifference curves in combination can be used to predict human behavior, i.e. generate true positive statements. A positive statement takes the form of an if/then statement. If A then B. A is a change in the world, e.g. change in income, prices, or tastes and preferences. B is a predicted behavior. The Budget Line shows the combinations of 2 goods that are attainable (can be be bought) but a person given his income and the prices of the 2 goods. A persons indifference curves rank bundles from best to worst. We predict a human's behavior by assuming the person will choose the attainable bundle that is on the highest indifference curve