Question

what are the properties of budget line ?

Answer 1

Thus, the slope of the budget line is negative of the price ratio, i.e., – Px/ Py. If prices of commodity 'X' and commodity 'Y' are equal, then, the budget line would have a 45° angle with both the axis. ADVERTISEMENTS: A flatter budget line means that the relative price of the commodity on the X-axis is lower.