Cambridge A-level Budget lines diagrams easy to understand

BUDGET LINE
CASE- 1 WHAT IS AND WHAT IS DEFIN



CAUSES (POSSIBLE BUT NOT
• MONEY INCOME INCREASED
• THE PRICE OF BOTH GOOD
PROPORTION
CONSEQUENCES (MUST DEFIN
• REAL INCOME INCREASED
• RELATIVE PRICES STAYED C




BUDGET LINE
CASE-2 WHAT IS AND WHAT IS DEFIN



CAUSES (POSSIBLE BUT NOT
• THE PRICE OF GOOD X DECREA
• THE PRICE OF GOOD Y AND M
CONSEQUENCES (MUST DEFIN
• REAL INCOME INCREASED
• GOOD X BECOME RELA
RELATIVELY MORE EXPEN



BUDGET LINE
CASE-3 WHAT IS AND WHAT IS DEFI



CAUSES (POSSIBLE BUT NOT
• THE PRICE OF GOOD X AND
THE DECREASE IN THE PRIC
OF GOOD Y.
• THE PRICE OF GOOD Y AND M
CONSEQUENCES (MUST DEF
• REAL INCOME INCREASE
• GOOD X BECOME REL
RELATIVELY MORE EXPEN
BUDGET LINE