Question

A consumer wants to consume two goods the prices of two goods are respectively 10 and 20 the income of the consumer is Rs 100 using this information write down the equation of the budget line ,construct a budget line , calculate the slope of the buget

Answer 1

1. This is where Y = income, PA = price of item A, and QA= quantity of item A consumed. PB = price of item B, while QB = quantity of item B consumed.