Budget Line

… a core term used in Economic Analysis and Atlas102

Definition

Business Dictionary (reference below) defines budget line as graphical depiction of the various combinations of two selected products that a consumer can afford at specified prices for the products given their particular income level.

Business Dictionary goes on to say:

“When a typical business is analyzing a two product budget line, the amounts of the first product are plotted on the horizontal X axis and the amounts of the second product are plotted on the vertical Y axis.”

For a 12-minute Khan Academy video on the Budget Line see: https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/marginal-utility-tutorial/v/budget-line.

Atlas topic, subject, and course

Consumer Theory and Elasticity of Demand and Supply (core topic) in Economic Analysis and Atlas102 Economic Analysis.

Source

Business Dictionary, Budget Line,  at http://www.businessdictionary.com/definition/budget-line.html, accessed 12 May 2016.

Khan Academy, Budget Line, at https://www.khanacademy.org/economics-finance-domain/microeconomics/choices-opp-cost-tutorial/marginal-utility-tutorial/v/budget-line, accessed 12 May 2016.

Page created by: Ian Clark, last modified 12 May 2016.