Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Get quick and reliable answers to your questions from a dedicated community of professionals on our platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.
Sagot :
An increase in a consumer's income will increase the slope of the consumer's budget line.
What is a budget line?
- The budget line sometimes referred to as the budget restriction, displays every combination of two commodities that a client is able to afford at the current market pricing and within their specific income range.
- The budget line is a graphical representation of every combination of the two commodities that may be purchased using the given income and cost, with the price of each combination being equal to the customer's monetary earnings.
- It's critical to remember that the slope of the budget line corresponds to the cost-to-volume ratio of two commodities.
- The slope of the budgetary restriction is very significant.
Increase in the slope of the budget line:
- A rise in income allows consumers to purchase more of both goods, which causes the budget line to shift outward, or to the right (slope increases).
Therefore, an increase in a consumer's income will increase the slope of the consumer's budget line.
Know more about the slope of the budget line here:
https://brainly.com/question/14524034
#SPJ4
Thank you for visiting our platform. We hope you found the answers you were looking for. Come back anytime you need more information. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Find reliable answers at Westonci.ca. Visit us again for the latest updates and expert advice.
