Question -
Answer -
M2 = Rs40
P1 = Rs 4
P2 = Rs 5
Initial equation of the budget line:
4x1 + 5x2 = 20
New equation of the budget line:
4x1 + 5x2 = 40
As M hasincreased, the consumer can now purchase more of both the goods and the budgetline will shift parallelly outwards to A’B’ from AB.
Horizontal intercept will be 
Vertical intercept will be 
The slope of the new budget line will be the same as thatof the old budget line.
