Budget Line and Optimal Choice

Income M = 100 and the price of y is fixed at py = 10. Drag the slider to change the price of x. The budget line pivots around the vertical intercept, and the optimal bundle (tangency with a Cobb–Douglas indifference curve) shifts along y = 5.

Price of x
$5.00
Optimal x
10.00
Optimal y
5.00
Utility
7.07