InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
What is budget line? |
|
Answer» It is a line showing different possible combinations of Good-1 and Good-2, which a consumer can buy, given his budget and the prices of Good-1 and Good-2. Anywhere, on the budget line, a consumer is spending his entire income either on Good-1 or on Good-2 or on both Good-1 and Good-2. |
|