Question

If the price of item 2 falls by one rupee, but there is no change in the price of item I and the income of the consumer, then what will be the change in the budget line?​

Answer 1

Answer:

price of 2 item = -1 ruppes

let the cost of both item to be=100ruppes

100*2-1*2

200-2=198 ruppes will be the new cost..

and there will be no change in on the budget line as because in today's generation there is no value of 2 rupees there is value of $2 but there is no value of 2 rupees...