Question

explain the concept of budget line with the help of numerical example​

Answer 1

Answer:

A budget line represents the different combinations of two goods that are affordable and are available to a consumer given his/her level of income and the market prices of the goods. The equation of the budget line is represented as follows.

P1x1+ P2x2=M

For example, consider a consumer who has an income (M) of Rs 100. He wants to purchase two goods, good 1 and good 2. Good 1 costs (P 1) Rs 5 per unit, while good 2 costs (P 2) Rs 4 per unit. In this case, the  budget line is represented as  5x1+4x2= 100

Explanation:

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Answer 2

this is the explanation of the budget line with an example