Question

Why is the budget line downward sloping? Explain.

Answer 1

Answer:

It means, a consumer can purchase only those combinations (bundles) of goods, which cost less than or equal to his income. ... It is also known as price line. Budget line is downward sloping because when more and more units of one good can be bought, it leads to decrease some units of other good with the given income.

Explanation:

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