+3 votes
in Class 12 by kratos

Define a Budget line. When can it shift to the right ?

1 Answer

+6 votes
by kratos
 
Best answer

Budget line shows the combination of two goods which can be purchased with the given income and the prices of given two goods.

Budget line can shift to the right due to the following:

i) There is rise in income of the consumer, with prices remaining same

ii) Fall in the Px , with no change in income and price of good Y

iii) Fall in the Py, with no change in income and the price of good X.

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