Question
What is the ‘price line’?
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Answer
Price line is the graphical representation of the relationship between output and price, with x-axis denoting the output and y-axis denoting the price. For a perfectly competitive firm, price line and demand curve are the same.
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→|
$Combination$
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$Good ~X$
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$Good ~Y$
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$MRS_{XY}$
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A
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1
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15
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-
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B
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2
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-
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4 : 1
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C
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-
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8
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3 : 1
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D
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4
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6
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-
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E
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5
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1 : 1
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Price (₹)
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4
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5
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6
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7
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Units sold
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1
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2
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3
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4
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| 3 | 60 |