Theory of consumer behaviour — Economics STD 11 Commerce — Question
CBSE BoardEnglish MediumSTD 11 CommerceEconomicsTheory of consumer behaviour3 Marks
Question
Define a budget line. When can it shift towards right?
✓
Answer
It indicates the quantity of goods X and Y that a consumer can buy at a given level of income. Budget line is a limiting factor for the consumer beyond which he cannot go, that means a consumer can only afford to buy combinations that fall along his budget line or inside it. He cannot afford to buy combinations that are above his budget line.It can shift to the right due to following reasons:
When the level of income increases.
When price of both goods fall.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.