Suppose individual lives in a two commodity world {x,y} and prices she faces for these products are given by {p1,p2} , her income is m. Budget line all the bundles, she can afford, when she spends her entire income, i.e. p1x + p2y = m. Budget constraint shows all bundles which are affordable p1x + p2y ≤ m.
Budget line and budget set. Derive the slope of budget line and provide its economic intuition
