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Budget line definition. The budget line, also known as the budget constraint, exhibits all the combinations of two commodities that a customer can manage to afford at the provided market prices and within the particular earning degree.
Apr 25, 2024 · The budget line refers to a straight line sloping downwards, indicating the different combinations of two goods available to a consumer considering the prices and his income. Twp properties of a price line are the real income line and negative slope.
4 days ago · The budget line definition is held to be a straight line with a downward slope indicating the different combination of two commodities. These two commodities are purchased by a consumer by the given market price with income allocation. It is also termed as a budget constraint.
Definition: The Budget Line, also called as Budget Constraint shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level.
Feb 4, 2019 · Budget line (also known as budget constraint) is a schedule or a graph that shows a series of various combinations of two products that can be consumed at a given income and prices. Budget line is to consumers what a production possibilities curve is to producers.
Apr 6, 2024 · Definition of Budget Line. A budget line, also known as a budget constraint, represents all the possible combinations of two goods or services that a consumer can purchase given their income level and the prices of those goods or services.
Apr 10, 2019 · The budget line is an elementary concept that most consumers understand intuitively without a need for graphs and equations -- it's the household budget, for example. Taken informally, the budget line describes the boundary of affordability for a given budget and specific goods.
