How to Calculate the Budget Line

Tutorial on how to calculate the budget line. Typically taught in a principles of economics, microeconomics, or managerial economics course.
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[@zoe69421]

this video just helped me solve a HW problem in 5 minutes that ive been trying to figure out for 2 hours.

[@kingsleyselorm]

I almost gave up 😂😂

[@dagmawittarekegn2957]

My economics has been talking for like an hour and a half and i ended up understanding nothing. But , this simple lecture is pretty easy, thank you so much!!

[@sonalchoudhary2852]

You explained everything without wasting our time.. Thank you sir

[@user-qk7sk9nf9k]

I love you❤

[@economicsfun]

Good question. x and y are quantity and the slope of the budget line is 40/30 (as you say rise over run). The slope of the budget line is also the Price of X divided by the Price of Y. So the slope is both the change in y over the chance in x and the price of good x divided by the price of good y. This is an important concept when you start studying about indifference curves.

[@Duxaization]

This is idiot proof, and exactly how material should be taught so anyone can understand it. Thank you, you have my like sub and ill be watching your shows cramming for swotvac this week :P

[@AwesomeChahal]

saved my life tonight

[@economicsfun]

***** Glad I saved your life. Can you help me save other students by liking, sharing, subscribing. If you get a chance could you please like our FB page. www.FaceBook.Com/PartyMoreStudyLess It will help others find the videos.

[@jeromedavidson3615]

This was sooo help ful i cant thank u enough from india anyways keep doing what your doing bud✌

[@sourcloud_]

oh my God thank u. i stared at my lecture notes for forever u saved me

[@tilahungebretsadik]

Really I wanna thank u guys. You helped me to do my assignment quickly.

[@economicsfun]

@Zk1f3r you want to find out where the line hits the x axis (horizontal axis) and the y axis (vertical axis). If all income is spent on vegetables then zero income is spent on bread. Bread = 0 and this is where the line hits the horizontal axis. If all income is spent on bread then vegetable is zero and this is where the line hits the y axis. hope this removes your bloody confusion. ask if you need more help.

[@jasonj7740]

Thank you! Lost a section of my notes from econ and you saved me on my homework :)

[@economicsfun]

@Zk1f3r So... Total Income = 1166.67 Price of Bread = 68 Price of Veg = 11.83 Total Income / Price of Bread = Total Quantity of Bread (if all income spent on bread) Total Income / Price of Veg = Total Quantity of Veg (if all income is spent on veg). On the horizontal axis is Quantity of Veg On the vertical axis is Quantity of Bread

[@ostitomashud6568]

what to do if there is only one product to sell

[@economicsfun]

@Zk1f3r Not sure I understand your question but let me give it a go.... If you take total income spent on bread and income spent on vegetables should equal total income. Price of Veg x Quantity of Veg = Income spent on Veg Price of Bread x Quantity of Bread = Income spent on Bread Income Spent on Veg + Income Spent on Bread = Total Income. Does this help?

[@TheLilHanz]

This is so helpful! Thanks so much, you really helped me out!

[@EHHNURGEE]

Hey how would i get the price of X or Y if im given points on a graph, the budget and the price ratio?

[@gabriellekershaw267]

I am so confused still... why is he putting 40 on the y axis when that is the x axis ... why is he putting 30 on the x axis when that is supposed to go on the y axis.... this isnt correct...

[@DeboraKhonje]

Income divide by price 30 gives 40 which is to be plotted on the y axis

[@economicsfun]

If the consumer only buys good y (and no x) then the quantity of y is total income divided by the price. In this case income is $1,200 and the price of y is $30, so the quantity of y is 40.

[@amyxiejing5068]

the best clear explantion

[@guitarsforever]

I thought slope is rise over run = y/x and not x/y... ?

[@andrewsamir1361]

thank you very much saved my finals :)

[@tammymereotlhe9062]

😭😩not me understating this before I have to write tomorrow, thank you so much

[@nancimendoza4467]

Thank you so much for this.

[@smithaabhilash9896]

thanks it was a great help for me

[@unesakheva9006]

Thank You very very much .. Helped me a lot, I learnt to much from your playlist. You deserve more , Thank u u u u very ver much!!!!!!

[@behailuchimdessa8495]

Thanks,Good attempting!

[@lamarnash2439]

Thank you very much sir.

[@bignewse]

why is the budget lines gradient x/y, when the gradient for a straight line would be y/x?? can anyone help me please

[@angelusvastator1297]

Thanks for telling me how to solve Qs from budget constraint. my professor legit did not show this AT all lmao

[@charleswaters9997]

do you know how to create a excel chart for a budget line

[@gloppezz1993]

😲I spent all morning trying to figure out this one problem since 7 in the morning and now its 3:30pm and I finally got it, and it only took two minutes. 😒 Why can't my teachers teach like this?😖 I just wasted like 7 hours on this question. Fudge!!!! Now that I just realized this...😭

[@hzhenrik]

Thanks !

[@yudhistirasakmeniko4464]

Thank you

[@ramindergill318]

Let x be coffee and price of 7 cups of coffee is $2.50 now how to write QxPx.. Is it as 7×2.50 or 7×17.50

[@ocsosweet]

thanks

[@fsveed]

hero.

[@maryandersen1810]

omg thank you

[@bushbushchickhon]

that isn't right, you would need 2400 to spend if you buy 30 and 40 you have 1200 x2, it should be 15 and 20, than you total amount of 1200

[@dmtree__]

Something doesn't add up if Px = 40, Py = 30, Qx = 30, Qy = 40, that would make PxQx + PyQy = 2400

[@DAN13LS70NE]

I know its too late probably but when you do the calculations you put PxQx=0 and solve for y and then PyQy=0 then solve for x.

[@UsmanAli-xk3yz]

DAMN! Is it really that easy?

[@Channel4Dummies]

Ok than, what if we don't have income..

[@kyledeoliveira2437]

What happens if Py=0

[@harshilgandhi2278]

You can buy unlimited quantity of y as it is free and if by equation you will buy every quantity of x 1200/40 =30 quantity of y

[@oliousdavid4242]

Thank you my nigga

[@christopher170]

If you're reading this Doctor Taber it's because YOU failed me.

[@akshay8350]

🐱

[@fishfishy7682]

thank you

[@economicsfun]

luu antar You are welcome!