What is the Budget Line?
The Budget Line, which is also known as Budget Constraint exhibits all the combinations of 2 commodities that a customer can manage to afford at the provided market prices and within the particular earning degree.
Budget line is a graphical delineation of all feasible combinations of 2 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.
It is important to keep in mind that the slope of the budget line is equivalent to the ratio of the cost of 2 commodities. The slope of the budget constraint possess a distinctive importance.
Also Read: What is Budget Set?
Hence, this is the detailed information about the Budget Line. To know more, stay tuned to BYJU’S.