मराठी

Why is the budget line negatively sloped?

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प्रश्न

Why is the budget line negatively sloped?

पर्याय

  • Prices are rising

  • Buying more of one good means giving up some of the other

  • Total spending is zero

  • Prices are not fixed

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उत्तर

Buying more of one good means giving up some of the other

Explanation:

With limited money, spending more on one good means less can be spent on the other, causing a negative slope.

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