Question

Why budget line rotate clock-wise or anticlock-wise?​

Answer 1

Budgets and changing prices

When the price of the good with price along x axis (good Q1 in this case) increases in comparison with the other good, the budget constraint rotates clockwise. This is because the budget can no longer buy as much of the first good (1).

Answer 2

Budgets and changing prices

When the price of the good with price along x axis (good Q1 in this case) increases in comparison with the other good, the budget constraint rotates clockwise. This is because the budget can no longer buy as much of the first good (1).