The question I have is, for example, say Garry has two goods, cookies he pays 1 to consume a cookie and a maximum of 10 can be consumed, whilst he gets PAID 2 to consume vegetables. Garry is also given an initial budget of $5. Placing cookies on the vertical axes and vegetables on the horizontal axis. Would the budget line not start from 5 cookies (0 vegetables) and increase up to 10 cookies, 2.5 vegetables (or 3) before forming a horizontal line as the maximum cookies consumed is 10. I've looked online and it mostly states that budget lines are always downwards sloping. Thanks for your help

  • $\begingroup$ What exactly are you asking, what do you mean by "logical"? You have clearly demonstrated possibility. $\endgroup$ – Giskard Mar 21 '20 at 8:44
  • $\begingroup$ If you get paid for consuming a good, then this good has a negative price. This is not the typical case you'll find online. $\endgroup$ – VARulle Mar 21 '20 at 10:25
  • $\begingroup$ okay, thank you just wanted to double-check that it was correct $\endgroup$ – L W Mar 21 '20 at 11:05

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.