**Understand the Economic Concept of a Budget Line**

19/10/2011Â Â· Calculating the budget line equation Johnâ€™s income is $100 a week, CD is $10 each and price of a book is $20. Johnâ€™s utility is represented by figure 1 below.... A line connecting all points of tangency between the indifference curve and the budget constraint is called the expansion path. [3] All two dimensional budget constraints are generalized into the equation:

**The Budget Line Budget Constraint Intercepts**

If the slope is zero, then the line is horizontal and y does not change at all (the equation of the line has the form y = c and y = c for all values of x.) Example 4 Experiment with the applet below, varying the value of m in the linear equation y = mx + b to see how changing the slope m changes the graph.... a) What is the equation for her budget line? Draw it (with T on the vertical axis), and Draw it (with T on the vertical axis), and label the slope and intercepts.

**How do we get the equation of indifference curve? Quora**

Since the budget is equal to 20, and the price of each good is $1, we want the budget line to intercept each axis at a value of 20 (meaning 20 pears and 20 hamburgers). To get this, our intercept has to be 20, and 20 times our coefficient value has to result in 0. This gives us:... If the slope is zero, then the line is horizontal and y does not change at all (the equation of the line has the form y = c and y = c for all values of x.) Example 4 Experiment with the applet below, varying the value of m in the linear equation y = mx + b to see how changing the slope m changes the graph.

**Ex 10.2 12 Find equation of line that cuts equal intercepts**

A line connecting all points of tangency between the indifference curve and the budget constraint is called the expansion path. [3] All two dimensional budget constraints are generalized into the equation:... Find the horizontal intercept of the budget line (i.e., the consumption bundle on the budget line for which x 2 =0). Graph the budget set. Determine the slope of the budget line â€¦

## How To Find Equation Of A Budget Line

### How do we get the equation of indifference curve? Quora

- 6.1 The Budget Line â€“ Principles of Microeconomics
- The Budget Line ingrimayne.com
- Budget Line Equation Calculator
- The Budget Line ingrimayne.com

## How To Find Equation Of A Budget Line

### The budget line limits choices; it is due to scarcity. The cost of a book is $5.00 or two movies. Spending money on a product means that money cannot be used to purchase another product. In the case of books versus movies, the tradeoff is a straight line because one more book always costs two movies, regardless of how many books Rose has already.

- Budget Line Calculator Income: Price (x) Quantity (x) Price (y) Quantity (y) Budget Line Equation Video
- Since the equation for the budget constraint defines a straight line, the budget constraint can be drawn by just connecting the dots that were plotted in the previous step. Since the slope of a line is given by the change in y divided by change in x, the slope of this line is -9/6, or -3/2.
- Transcript. Ex 10.2, 12 Find the equation of a line that cuts off equal intercepts on the coordinate axes and passes through the point (2, 3). Equation of a line by intercept form is x/a + y/b = 1 Where a = x-intercept & b = y-intercept But given that x & y intercept are equal a = b Thus, equation
- An indifference curve is a curve That shows all combination of a good that provide the same level of utility; Budget line Represents all The combination of good and services That a consumer may purchase Given current price Within his given income

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