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What is difference between indifference curve and budget line?
budget line shows purchasing power of an consumer but indifference curve show willingness of consumer for two commodities.
What is budget line and show the shift in budget line?
A budget line is a locus of combination of two goods a consumer can afford to buy with his/her income.shift in a budget line can be caused by various factors like a change in individuals income
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.....
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 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.
How is budget line useful in reaching consumer equilibrium?
Budget line helps the consumer to decide to purchase a particular combination that falls in his budget line although a different combination is more desirable as it will give more satisfaction level.
What is difference between indifference curve and budget line?
budget line shows purchasing power of an consumer but indifference curve show willingness of consumer for two commodities.
How will an increase in income affect the budget line?
if the consumer`s income changes it will influence the budget line and it will shift to the right.
What is budget line and show the shift in budget line?
A budget line is a locus of combination of two goods a consumer can afford to buy with his/her income.shift in a budget line can be caused by various factors like a change in individuals income
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.....
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.
At the point of consumer equilibrium the slope of the budget line is equal to the?
Marginal rate of substitution
What is the characteristics of budget line?
A budget line, or budget constraint, represents the combinations of two goods that a consumer can purchase given their income and the prices of the goods. It is typically downward sloping, reflecting the trade-off between the two goods—when more of one good is consumed, less of the other can be afforded. The slope of the budget line is determined by the relative prices of the goods. Changes in income or prices shift the budget line, affecting the consumer's purchasing options.
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 information is embodied in budget line?
i think it represent the extent a consumer can his income provided he/she doesn, 't goes beyond the line
The alternative combinations of two goods which a consumer can purchase with a given money income is shown by?
A budget line.
A change in the slope of a budget line is solely the result of a change in?
A change in the slope of a budget line is solely the result of a change in the consumer preference between two goods (A&B) given the cosumer's money income.
