A price line is a graphical representation of the various combinations of two commodities that an individual can purchase within a particular income level.
At each level on the price line, the total cost of the two commodities equals the income earned by the individual.
The price line is also known as the budget line.
The slope of the budget line or the price line is equal to the ratio of the prices of the commodities taken on each of the axis.
Final Answer:
A price line is a graphical representation of the various combinations of two commodities that an individual can purchase within a particular income level.
