Define budget line

1.	Define budget line
Answer» Budget Line or Price Line This line is showing different combinations of two goods which a consumer can attain at given income and market price of the goods.Equation of Budget Line, M = Px Qx + Py Qy Where, M = MarketPx = Price of Good x, Py = Price of Good yQx = Quantity of Good y, Qy = Quantity of Good y<br>It is the curve which shows the various combination of two goods that can be bought by a consumer given the money income and price of two goods. Thus, it is a diagrammatic presentation of budget set.<br>Define budget line

Discussion