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Theory of consumer behaviour — Economics STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceEconomicsTheory of consumer behaviour3 Marks
Question
What is a budget line? Why is it downward sloping?
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Answer

Budget line refers to the set of two goods which cost exactly equal to the money income of the consumer. It is negatively sloped because consumption of additional units of one commodity is associated with the sacrifice of another commodity.

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