Question

why is the budget line a straight line explain​

Answer 1

Answer:

answer

Explanation:

A straight budget line depicts the constant slope of the budget line. The slope of the budget line given by the ratio of the price of the two goods (- P1/ P2). Constant slope and thereby, straight line is in accordance with the assumption that the prices of the two goods are given.

Answer 2

Answer:

The budget line is a visual illustration of all feasible assortments of the two items and A straight budget line shows the unchanging slope of the budget line.

Explanation:

Budget line

• The budget line, also known as the budget constraint, displays all the varieties of two commodities that a consumer can handle to afford at the furnished market prices and within the respective earning capacity.
• The budget line is a visual illustration of all feasible assortments of the two items that can be bought with furnished earnings and cost so that the price of each of these varieties exists equivalent to the financial earnings of the buyer.
• It is important to maintain in mind that the slope of the budget line stands identical to the percentage of the cost of two commodities. The slope of the budget constraint retains distinctive prominence.

Straight line

• A straight budget line shows the unchanging slope of the budget line. The slope of the budget line is provided by the percentage of the price of the two goods (- P1/ P2).
• Constant slope and thereby, a straight line exists in accordance with the presumption that the prices of the two goods are shown.

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