Question

Why should a consumer always operate at budget line

Answer 1

A consumer always tries to maximize his satisfaction. But, in this pursuit, he is hampered by his limited money income, i.e., budget. A budget line is defined as the purchasable combinations of two goods, given the prices of each good and consumer's income.

Answer 2

$<b>$The consumer always try to decrease the money of any product.A change in the price of a good and thebudget line. A change in the price of a good and the budget line. If income is held constant, and the price of one of the goods changes then the slope of the curve will change. If the price of one of the commodity increases, the budget line will move inwards and vice versa.