Question

nikhil's income is ₹2000 and he went for shopping to buy two goods i.e tea and cola which were priced at ₹40 and ₹50 respectively .On this basis answer the following questions.
a)what would be the equation for budget line.
b)what is the slope of the budget line of nikhil's?
c)how much of tea can nikhil purchase if he spends his income to buy tea only?
d) if his income increases to ₹3000 ,then how will his budget line shift? discuss the probable cases

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Answer 1

Answer:

Good morning dear friend.