--%>

Why the slope budget line downward

Describe why is the budget line slope downward?

E

Expert

Verified

Since with given money income when a consumer purchases more of one good, he has to buy less of another goods.

   Related Questions in Microeconomics

  • Q : Boosting total revenue by elastic price

    Price hikes for DVD games will boost total revenue providing the price is: (w) located on this demand curve. (x) above $30. (y) below $30. (z) below $25.

    Q : Example of determining new equilibrium

    As per such supply and demand curves for peanuts, there is the: (w) demand for peanuts has fallen. (x) price rises to P1 due to better peanut technology. (y) production of peanuts was initially Q0. (z) new equilibrium price of pe

  • Q : Monopolistic exploitation of workers

    When a firm hires workers to a point where VMP > MRP = MFC = W then: (1) There is a bilateral monopoly condition. (2) Wage discrimination is being exercised. (3) There is monopolistic exploitation of the workers. (4) The firm consists of monopsony power.

  • Q : Define revenue Revenue : This refers to

    Revenue: This refers to total money income from the sale of output.

  • Q : Buying something when expect a price to

    Buying since you expect a price to increase, at that point you will sell, which is termed as: (w) arbitration. (x) speculation. (y) profiteering. (z) arbitrage. Hey friends please give your opinion for the problem

  • Q : Principal-Agent Problems instance An

    An instance of the principal-agent trouble would be:  (i) The student failing an exam since he did not study. (ii) The crook being caught as he made much noise. (iii) My son purchase baseball cards with the money I gave him to purchase milk for t

  • Q : Determine elasticity of supply when

    When a $5 price hike raises the number of tanks of dehydrated water supplied into this market from point a to point b, there elasticity of supply is: (w) 4.5. (x) 3.0. (y) 1.5. (z) 0.5.

    Q : Measures of Poverty Line The poverty

    The poverty line is: (1) about $15000/year for a family of two in 2006. (2) an index which varies depending on family characteristics. (3) dependent only on the size and income of a family. (4) about $12500/year for a family of four in 2006. (5) the p

  • Q : Public Opinion Sampling Public Opinion

    Public Opinion Sampling: Increasingly trade policy debates and issues are being defined and driven by public polling and expert opinion. Mendellson and Wolfe (2004) offer an overview of the public policy debate in Canada and the roll of polling in def

  • Q : Define Price discrimination Price

    Price discrimination: The Price discrimination is a situation whenever a monopolist charges distinct price from various buyers of the similar product. This is usually done to maximize profits.