The Total solution for NCERT class 6-12
Ifthe prices and the income are doubled, then the budget line will remainunchanged.
M1 = Rs 20
P1 = Rs 4
P2 = Rs 5
M2 = Rs 40
= Rs 8
= Rs 10
Horizontal intercept
Vertical intercept
Slope
Hence,the vertical intercept, the horizontal intercept and the slope of the budgetline will remain the same. The new budget line will be the same as the oldbudget line but associated with higher income and higher prices of both thegoods.