Budget Line Equation Calculator

Budget Line Equation Calculator Image to Crop

Given Budget Line Values:

P_x = 2, P_y = 4, Q_x = 3, Q_y = 5

Calculate Income

Budget Line Equation:

I = P_x x Q_x + 4 x P_y x Q_y where: I = Income 2 = Price of item x 3 = Quantity of Item x 4 = Price of item y 5 = Quantity of Item y

Plug in values

I = 2 x 3 + 4 x 5

I = 6 + 20

I = 26

You have 1 free calculations remaining

With a Total Income of 26 you can buy 3 items of x at a price of 2 and 5 items of y at a price of 4

What is the Answer?

How does the Budget Line Equation Calculator work?

Free Budget Line Equation Calculator - Solves for any one of the 5 items in the standard budget line equation:
Income (I)
Quantity of x = Q_x
Quantity of y = Q_y
Price of x = P_x
Price of y = P_y
This calculator has 5 inputs.

What 1 formula is used for the Budget Line Equation Calculator?

What 5 concepts are covered in the Budget Line Equation Calculator?

budget: an estimate of income and expenditure for a set period of time. In economics, a budget constraint represents all the combinations of goods and services that a consumer may purchase given current prices within his or her given income.
budget line equation: Equation showing all the combinations of goods and services that a consumer may purchase given current prices within his or her given income
I = P_xQ_x + P_yQ_y where I = Income, P denotes price, Q denotes quantity
equation: a statement declaring two mathematical expressions are equal
price: the amount of money expected, required, or given in payment for something
quantity: amount of something