What is budget line or budget …
CBSE, JEE, NEET, CUET
Question Bank, Mock Tests, Exam Papers
NCERT Solutions, Sample Papers, Notes, Videos
Posted by Virendra Sharma 6 years, 2 months ago
- 1 answers
Test
Related Questions
Posted by Mahi Bansal 1 year, 4 months ago
- 0 answers
Posted by Shiv Narayan Kumar 1 year, 4 months ago
- 1 answers
Posted by Vivek Saroj 1 year, 4 months ago
- 0 answers
Posted by Charvi Charvi 1 year, 4 months ago
- 0 answers
myCBSEguide
Trusted by 1 Crore+ Students
Test Generator
Create papers online. It's FREE.
CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
Sia ? 6 years, 2 months ago
Budget line is a graphical representation which shows all the possible combinations of the two goods that a consumer can buy with his given income and market prices of commodities. It is also called consumption possibility line.
Budget set refers to the set of all possible combinations of the two goods which a consumer can afford at his given income and prices in the market. Equation of budget set is:
PX.QX + PY.Qy{tex}\leq{/tex}M,
Where PX is the price of good X
QX is the quantity of good X
PY is the price of good Y
QY is the quantity of good Y.
1Thank You