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Describe the budget constraint(line) of the consumer

Describe the budget constraint(line) of the consumer

Answers

Wilfred
- A budget line can be defined as a line that joins all combinations of two commodities a consumer can buy using his entire income.
- It is assumed that consumers’ income is fixed, say at I, and he tries to allocate this income between two commodities x and y.
- How many of the two commodities to consume would depend on the prices of each.
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Wilfykil answered the question on March 6, 2019 at 12:49

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