# Explanation of the graphics figures upon budget - Assignment Example

Summary
In the diagram below Linda’s budget set is depicted when she is in Adelaide. The vertical axis measures expenditure on food while the horizontal axis measures her expenditure on clothing. With her present income and given the prices of food and clothing …

## Extract of sample "Explanation of the graphics figures upon budget"

Download file to see previous pages The budget line implies that if Susan spent all her income on clothing she would be able to purchase OB units of it. If on the other hand, Susan spent all her income on food, she would be able to purchase OA units of food. If she allocates her income on both goods then all combinations of food and clothing she can attain are those on or within the line AB. Thus the triangle OAB defines the combinations of food and clothing attainable by Susan, given her income and the prices of food and clothing.
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