The Total solution for NCERT class 6-12
P1 = Rs4
P2 = Rs 5
M = Rs20
Since the income and the price of good 1 areunchanged, the decrease in the price of good 2 will increase the verticalintercept of the budget line. The new budget line will also pivot outwardsaround the same horizontal intercept.
Horizontal intercept
Vertical intercept
Slope
The slope of the new budget line will be more and the newbudget line will be steeper than the original one.