Budget lines are linear because income and the prices of the two goods are fixed.

Name: Budget lines are linear because income and the prices of the two goods are fixed.
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Budget lines are linear because they represent combinations of two goods that a consumer can purchase with a fixed income, assuming the prices of the goods remain constant. The slope of the budget line is determined by the ratio of the prices of the two goods, which are assumed to be fixed, leading to a straight (linear) line.

Budget Lines Are Linear Because Income and the Prices of the Two