How does the budget line change if the price of good 2 decreases by a rupee but the price of good 1 and the consumer’s income remain unchanged?
If the price of good 2 decreases and the price of good 1 and income of consumer remain unchanged, then the budget line will be In the figure, budget line shifts to the right from AB to A1B only on Y-axis but unchanged on X-axis (because there is no change in the price of good1).
