Answer:
represent the quantity of each good that could be purchased if all of the budget were allocated to that good.
Step-by-step explanation:
The budget line is a graph which shows the two combinations of goods a consumer can consume given price and income level
Properties of the budget line
- When income increases, the budget line shifts outward and shifts inward when income decreases
- the horizontal and vertical intercepts represent the quantity of each good that could be purchased if all of the budget were allocated to that good.
- the budget line is a straight line. This indicates that the marginal rate of substitution is constant
- the budget line is negatively sloped