Question

24 Define a budget line When can it shift to the right? Draw diagram.
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Answer 1

Answer:

Budget line is a line which shows combinations of two goods that can be purchased by a consumer given his budget and the prices of Good 1 and Good 2. Budget line shifts to the right when price of both the goods (P, P) decreases. ...

Answer 2

Answer:

a budget line represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. ... when there is fall in the prices of two goods, let's say, X and y and if the income of the consumer remains unchanged, then also thebudget line will shift to the right.

Explanation:

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