Price of X and Y Goods Remain Unchanged

Price of x and y goods remain unchanged then, a

Here we can see that, when the income increase of consumers they will able to buy a large quantity of both goods with the available income then the initial budget line BL shifted upword to BL'.

And, If the income decreases, the consumers will able to buy a smaller quantity of both goods. Thus, the initial budget line BL shifted to downword to B'' L''.

Prove that, the slope of the budget line curve is equal to the ratio of goods.

                             y

                       
                            [pic 2][pic 3][pic 4][pic 1]

               good y

                                   o                       good x                                        x[pic 6][pic 5]

Price of x and y goods remain unchanged then, a

Here we can see that, when the income increase of consumers they will able to buy a large quantity of both goods with the available income then the initial budget line BL shifted upword to BL'.

And, If the income decreases, the consumers will able to buy a smaller quantity of both goods. Thus, the initial budget line BL shifted to downword to B'' L''.

Prove that, the slope of the budget line curve is equal to the ratio of goods.

                             y

                       
                            [pic 8][pic 9][pic 10][pic 7]

               good y

                                   o                       good x                                        x[pic 12][pic 11]

Price of x and y goods remain unchanged then, a

Here we can see that, when the income increase of consumers they will able to buy a large quantity of both goods with the available income then the initial budget line BL shifted upword to BL'.