The financial encyclopedia uses cookies to improve your user experience. Find out more here!


       

 

Budget line
 

 

A graph showing what combinations of quantities of two goods be afforded by a consumer with a fixed total amount to spend. If each good is available in any quantity at a fixed price per unit, the budget line is a straight line with a slope equal to the relative price of the two goods.

 

Reference: Oxford Press Dictonary of Economics, 5th edt.