Question

14.
A consumer wants to consume - good 1 and good 2 whose prices are 20 and 10 respectively.
The consumer's income is 100. Construct the budget line of the consumer. How does the
budget line change if the consumer's income increases to 120, prices of the two goods
remaining unchanged.
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Answer 1

Answer:

The budget line is downward sloping because when more and more units of one good can be bought, it leads to decrease some units of

other good with the given income.

Explanation: