define buget line and indifference curve also explain. why are the two downward sloping from left to right
Answers
Answer:
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. The indifference curves must slope down from left to right. This means that an indifference curve is negatively sloped.
Answer:
Budget line is a graphical representation of all possible combinations of two goods which can be purchased with given income and prices, such that the cost of each of these combinations is equal to the money income of the consumer.
Explanation:
An indifference curve is a graph showing combination of two goods that give the consumer equal satisfaction and utility. Each point on an indifference curve indicates that a consumer is indifferent between the two and all points give him the same utility........both of them some how related to marginal utility....thtswhy they both are in down ward sloping