Question

. Assuming two goods X and Y,
representing Quantity of good X on X
axis and quantity of good Y on the Y-
axis, What happens to the Budget line
when price of X commodity fall?​

Answer 1

Explanation:

when the price of x commodity falls then the budget line will shift right from AB to A1B.

Then the new budget line meets the y axis at the same point Y because the price of Y has not changed