Budget line

Updated: Aug 20, 2021

A graph showing what combinations of quantities of two goods be afforded by a consumer with a fixed total amount to spend. If each good is available in any quantity at a fixed price per unit, the budget line is a straight line with a slope equal to the relative price of the two goods.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.