It is a straight line representing the consumption sets that lie on the Budget Limit in the graph. It is a combination of the total number of consumption sets that lie on or under the Budget Line in the graph. A Budget Line is also known as the Budget Constraint or Price Line.
What is a budget constraint?
The budget constraint is the boundary of the opportunity set—all possible combinations of consumption that someone can afford given the prices of goods and the individual’s income. Opportunity cost measures cost in terms of what must be given up in exchange.
What do you mean by budget line?
Budget line definition
The budget line is a graphical delineation of all possible combinations of the two commodities that can be bought with provided income and cost so that the price of each of these combinations is equivalent to the monetary earnings of the customer.
What is the difference between budget constraint and indifference curve?
A budget line shows combinations of two goods a consumer is able to consume, given a budget constraint. An indifference curve shows combinations of two goods that yield equal satisfaction.
What is budget constraint with example?
A budget constraint is an economic term referring to the combined amount of items you can afford within the amount of income available to you. For example, if you are a sales professional with a $1,000 budget for promotional items, this sets the upper limit on items you can purchase.
What is another name for budget constraint?
What is another word for budget constraint?
|budgetary constraint||budgetary restriction|
|budget limitation||budget restriction|
What is a budget line one word answer?
Answer: Budget line is a graphical representation of all possible combinations of two goods which can be purchased with given income and prices, such that the cost of each of these combinations is equal to the money income of the consumer.