what is budget line ?
class 11 economics
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A budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income. Consumer theory uses the concepts of a budget constraint and a preference map to analyze consumer choices
An Economics tutor answered. Slope of a budget line is the "price ratio" of the two goods. ... Since the slope isconstant we will get a straight line. The only case where a budget line may be non linear is the case of kinked constraints.
An Economics tutor answered. Slope of a budget line is the "price ratio" of the two goods. ... Since the slope isconstant we will get a straight line. The only case where a budget line may be non linear is the case of kinked constraints.
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Budget line is the graphical representation of all possible combinations of two goods which can be purchased with the given income and prices .
Such that the cost of each of these
combinations is equal to the income of
the consumer .
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