Question

Give the formula for the budget line. 2

Answer 1

The budget line gives us the combinations of good X and good Y that the consumer can purchase as  bundle. It gives us optimal choices.

The consumer's respective income and prices of the commodities give us the budget constraint of the consumer.

Therefore the formula for budget line is : M= px.X + py.Y

Where M : Income
            px : price of good X
            py : price of good Y

I hope this helps.