What are the properties of a budget line?

1.	What are the properties of a budget line?
Answer» 1. The Budget line slopes downwards from left to right 2. The bundle of goods whose price is equal to consumer’s income lie on the budget line. 3. The bundle of goods whose price is less than consumer’s income lie below budget line. 4. The bundle of goods whose price is more than consumer’s income lie above the budget line.

Answer»

1. The Budget line slopes downwards from left to right

2. The bundle of goods whose price is equal to consumer’s income lie on the budget line.

3. The bundle of goods whose price is less than consumer’s income lie below budget line.

4. The bundle of goods whose price is more than consumer’s income lie above the budget line.

Discussion