budget line

(redirected from consumption possibility line)

Budget Line

An item in a budget. For example, the amount of money a company expects to spend in manager salaries may be listed as a budget line.
Budget lineclick for a larger image
Fig. 19 Budget line. If a consumer has an income of £10 and the price of good X is 50 pence and the price of good Y is £1, he can buy 20 units of X or 10 units of Y, or some combination of both, for example 10 units of X and 5 units of Y The slope of the budget line measures the relative prices of the two goods.

budget line

or

consumption possibility line

a line showing the alternative combinations of goods that can be purchased by a consumer with a given income facing given prices. See also CONSUMER EQUILIBRIUM, REVEALED PREFERENCE THEORY, PRICE EFFECT.
References in periodicals archive ?
The factor income line FG is, however, not the consumption possibility line for the capitalist class.
7) Since the capitalist class will receive a fixed percent of the import quota revenue OR' after the capital inflow, its consumption possibility line becomes [Mathematical Expression Omitted], which is parallel to line F'G'.
The factor income line UV is, however, not the consumption possibility line for the labor class.
The consumption possibility line after the capital inflow is [Mathematical Expression Omitted], which is parallel to line U'V'.