A consumer budget is Rs 40.he is buying good1and good2 price of good 1is rs.8 amd good 2is rs.10per unit .draw a budget line
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Formula for budget line : M= px.X + py.Y
Suppose good X= good 1 and good Y= good 2
To find the point of X axis we : 40÷8= 5
To find the point of Y axis we : 40÷2= 20
now plot a a straight line joining a point 5 on x axis and point 20 on Y axis.
Below I am attaching the graph that i have constructed keeping in view the details that you wanted. I hope it was helpful.
Suppose good X= good 1 and good Y= good 2
To find the point of X axis we : 40÷8= 5
To find the point of Y axis we : 40÷2= 20
now plot a a straight line joining a point 5 on x axis and point 20 on Y axis.
Below I am attaching the graph that i have constructed keeping in view the details that you wanted. I hope it was helpful.
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