Answer :
The specific choices along the budget constraint line show the combinations of two different goods a person can afford based on their good's price and income.
Given the consumer's income and the prices of the two commodities, the budget restriction shows the possible product combinations. By dividing the revenue by the item's price, the intercept points of the budget constraint are calculated. When there is a limited budget, the amount of one good is measured on the horizontal axis, while the quantity of the other good is measured on the vertical axis.
The range of two-good combinations that the consumer may afford is indicated by the budget restriction. A budget line has the following two fundamental components: The consumer's income and purchasing power The two goods' respective market values.
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