Question

what is budget line?State it's one property​

Answer 1

Answer:

The Budget Line, which is also known as Budget Constraint, exhibits all the combinations of two commodities that a customer can manage to afford at the provided market prices and within the particular earning degree.

The budget line is a graphical delineation of all feasible combinations of two commodities that can be bought with provided income and cost so that the price of each of these combinations is equivalent to the monetary earnings of the customer.

Features of Budget Line

Some of the properties of the budget line are.

Negative Slope –  If the line is downward is shows a reverse correlation between the two products

Straight Line –  It indicates a continuous market rate of exchange in individual combination

Real Income Line – It denotes the income and the spending size of a customer

Tangent to Indifference Curve –  It is the point when the indifference curve meets the budget line. This point is called the consumer’s equilibrium

Answer 2

NANBA..

Budget line is a graphical representation of all possible combinations of two goods which can be purchased with given income and prices, such that the cost of each of these combinations is equal to the money income of the consumer.

Properties of budget line:

• Negative Slope – If the line is downward is shows a reverse correlation between the two products.

• Straight Line – It indicates a continuous market rate of exchange in individual combination.

• Real Income Line – It denotes the income and the spending size of a customer.