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To manipulate p_x (price of good X), p_y (price of good Y) or m (income), slide the blue buttons in the yellow field. See how the budget line changes. Also note that this influences the optimum point. You can restore the applet by clicking on the symbol in the upper right corner.

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Made by Dr. Jens Peter Siebel with GeoGebra.

In general:

• For given p_x, p_y and m the budget line has axes intercepts at x=m/p_x and y=m/p_y.
• For given p_y and m a rising (falling) p_x shifts the x-axis intercept leftward (rightward).
• For given p_x and m a rising (falling) p_y shifts the y-axis intercept downward (upward).
• For given p_x and p_y a rising (falling) m parallel shifts the budget line further away from the origin (closer to the origin).

Last update: 04/05/2011