Why budget line is downward sloping?

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Answer

When the consumer can purchase two goods only with the given income and the prices, it is but obvious that the consumer can buy more of Good X only when he buys less of Good Y. So, the budget line will be downward sloping indicating an inverse relationship between the consumption of two goods........... .......

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Budget line is downward slopping..... because if we consume more and more commodity of (X)  so we must reduce the consumption of another commodity say y.... beacuse of limited budget

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Budget line is downward sloping because of limited/given consumers income and prices of good-x and good-y,,the consumer can increase in the consumption of Good-x only when he/she decrease in the consumption of good-y,,

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Budget line is sloping downward because there is inverse relationship between the quantity of two goods we consider in case if the consumer wants to purchase good x she have to give up some amount of good y that's why the budget line is sloping downward

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Budget line is downward sloping. 'cause consumers have a limited income and unlimited wants.. in order to have same level of satisfaction consumer wants to buy more commodities.. and when they do it he will derive at a downward sloping budget line... there is a inverse relationship between income and consumption of commodity x

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Because if we increasing the purchasing of another product so we have to compromise with old product

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Budget line is down ward sloping because when our purchaseing power increased than income is decreasedThat's the reason budget line is down ward sloping

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Budget line is downward sloping because when more and more units of one good can be bought, it leads to decrease some units of other good with the given income.

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Budget line slopes downwards because in order to increase the consumption of one good we have reduce the consumption of the another good,with income constant

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The budget  line slope downward because in order to buy more of a commodity, the consumer must reduce its purchase on other commodity keeping income of the consumer.

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A budget line represents maximum amount of two commodity a person can purchase at given capital.

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Has it show complex relationship b/w consumption of two good at same time

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Bcoz it is combination of price of two goods

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Thank you

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Becoz with the given consumer's income and prices of good X and good Y , consumer can buy more of Good X only when he buys less of good Y

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Introduction

The budget line represents the different combinations of goods and services that an individual or a consumer can afford given their budget constraint. It shows the maximum quantities of two goods that can be purchased at different prices, while keeping the total expenditure within the budget.

Explanation

The Budget Constraint

The budget constraint arises from the limited income or budget of an individual or consumer. It reflects the trade-off between the purchase of different goods and services. The budget line is derived by plotting the affordable combinations of two goods on a graph.

Downward Sloping

The budget line is typically downward sloping due to the income constraint. There are two main reasons for this:

1. Opportunity Cost

The downward slope of the budget line is a result of the opportunity cost of purchasing one good over another. When the price of one good decreases, the consumer can afford to buy more of that good without exceeding their budget. Consequently, they have to give up purchasing some quantity of the other good. This trade-off between the two goods is reflected in the downward slope of the budget line.

2. Diminishing Marginal Utility

Another reason for the downward slope of the budget line is the concept of diminishing marginal utility. As a consumer purchases more of a particular good, the satisfaction or utility obtained from each additional unit decreases. This means that as more of a good is consumed, the consumer is willing to pay less for each additional unit.

Visual Representation

The downward slope of the budget line can be visually represented by connecting the points that represent different combinations of goods that can be purchased with the given budget. This line will have a negative slope, indicating the trade-off between the goods.

Conclusion

In conclusion, the budget line is downward sloping due to the opportunity cost associated with purchasing one good over another and the concept of diminishing marginal utility. These factors create a trade-off between goods and services, leading to a negative slope in the budget line. Understanding the downward slope of the budget line is essential in analyzing consumer behavior and decision-making regarding the allocation of limited resources.

Answer

Why is it downward sloping ? Answer: The budget line is a negativelydownward slopping line. The slope of a budget line measures the amount of good 2 that must be sacrificed in order to get an additional unit of good 1, as the conusmer income (M) is fixed .

Budget line is downward sloping because when more and more units of one good can be bought , it leads to decrease some units of other goods with the given income .

Answer

When the consumer purchase more and more of goods then the income of consumer is decreases that is the reason the slop of budgets line goes downward

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