The intercept of x-axis determines the quantity of good that can be purchased if all the income is spent on good represented on the x- axis.Â
The point at which budget line terminates on x-axis is the intercept of x-axis.
Intercept of x - axis is calculated as follows:
"Intercept \\space of\\space x \u2212 axis=\\frac {Income}{Price} \\\\50=\\frac{ Income}{20} \\\\Income= \\$1000"
The income of consumer is $1000.
The slope of budget line is calculated as follows:
"Slope \\space of \\space budget\\space line =\u2212\\frac{ Price \\space of \\space oranges}{Price\\space of\\space apples}\\\\=\u2212\\frac{20}{25}\\\\=\u22120.8"
Slope of budget line is -0.8.
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