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The alternative combinations of two goods which a consumer can purchase with a given money income is shown by?
Wiki User
∙ 13y ago
A budget line.
Wiki User
∙ 13y ago
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What is the definition of budget in economics?
A budget line is a line showing the alternative combinations of any two goods that a consumer can afford at given prices for the goods and a given level of income.
What is the definition of budget line in economics?
A budget line is a line showing the alternative combinations of any two goods that a consumer can afford at given prices for the goods and a given level of income.
What is the approximate average income of typical buyers?
This is the income that the average consumer will be able to purchase. This is not the money that is available for just your product.
What is the approximate average income of a typical buyer?
This is the income that the average consumer will be able to purchase. This is not the money that is available for just your product.
What is a budget line and how is it useful in reaching consumer equilibrium?
it is a line showing all possible combinations of two goods(goods-1 and good-2) which a consumer can buy with his given money income and the price of the goods prevailing in the market.anywhere on the budget line the consumer spends his entire income on either good1 or good2 or both the goods. each point on the budget line indicates the different combinations of good1 and good2 which a consumer can buy with his income. in indifference curve analysis consumer attains his equilibrium when the slope of price line/budget line is equal to the slope of indifference curve.equilibrium is attained at that point where ic curve is tangent to the price line.....
The graph comparing the income a consumer makes?
The answer depends on what is being compared: the income of the same consumer at different stages of their life or the income of a consumer compared with other consumer.
An article on income effect and substitution effect?
chnage in consumer's equilbrium due to change in income of the consumer..known as income effect.
What are the components of a consumer income?
inflation
What are the demand shifters?
Demand shifters include consumer income, number of consumer (population), consumer taste and preferences, and expectations: future prices of complements and substitutes and future income.
What are the Effect of recession on international trade?
It will reduce the disposable income or fall in income.When the income is fall so that it will cause reduce in purchasing power.As the result,consumer will purchase domestic goods and less of the imported goods can be afforded.
How does consumer income affect the demand for normal goods?
A good that decreases in demand when consumer income rises; having a negative Income increases will thus affect the consumption of these goods.
Which is a dimension or assumption of the marginal-utility theory of consumer behavior?
The consumer has a small income.
