Tag Archives | Budget Line

Concept of Budget Line (With Diagram) | Consumer’s Equilibrium | Economics

The knowledge of the concept of budget line is essential for understanding the theory of consumer's equilibrium. A higher indifference curve shows a higher level of satisfaction than a lower one. Therefore, a consumer in his attempt to maximise his satisfaction will try to reach the highest possible indifference curve. But in his pursuit of buying more and more goods [...]

By |2017-05-30T09:20:17+05:30May 30, 2017|Indifference Curves|Comments Off on Concept of Budget Line (With Diagram) | Consumer’s Equilibrium | Economics

Shift and Rotation of the Budget Line (With Diagram)

In this article we will discuss about the shift and rotation of the budget line, explained with the help of a suitable diagram. In the indifference curve theory, it is assumed that the consumer purchases and consumes only two goods (here X and Y). If the prices of goods X and Y, and the money income of the consumer is [...]

By |2016-09-17T15:59:41+05:30September 17, 2016|Consumer|Comments Off on Shift and Rotation of the Budget Line (With Diagram)
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