|A budget line graphically shows the many combinations of two goods which a consumer can buy, given his entire income and the prices of the two goods. A budget line, as shown in the diagram is a straight line having a negative slope.|
|There will be a shift in the budget line towards right when:|
|(1) Income of the consumer increases, prices of both the goods given, as shown in Diagram (i).|
|(2) Price of either of the two commodities or of both of commodities fall, as shown in Diagram (ii).|
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