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% Points on budget line:, , , e Q=under utilization of resources., e A,B,C,D= fully utilization of resources ~ Y, ', , , , * Change in budget line:- ‘ wo), The budget line can be changed due to change in the following elements..., , 1. Money income. ¥, , 2. Price of good ‘x’. ‘, , 3. Price of good ty’. s, , © Money income increases.(other things remains constant), (Px, Py,Mt), If the money income of the consumer increases without change in price of both the goods, than the budget line will shift parallel towards right. As the consumer will now be able to, , purchase more of both the goods due to extra income as presented in the given diagram,, The budget of the Ses increases from AB to A°B, , , , Page3 2