 Module 139 in production analysis we are going to study the budget line changes. As we know that the budget is mostly the maximum capacity available to the producer for the purchase of various factors of production. Now we have to check that what are the possibilities that this budget or the available resource allocation maximum capacity to the producer is going to change. So we know that that this is possible only and only when either the total budget available to the producer is going to change or the prices of the two factors they are going to change. And it is also possible that if both the factors are capital or labour that both the prices are going to change and it is also possible that the price of one factor is going to change. Now if we look at this change, it can also be positive, the positive change means that the price of a factor for the producer is going to be cheaper and cheaper. That will have a different impact and if the price of a factor is going to increase keeping the other factor price constant then it will be different. So now if we want to look at all of these things graphically, it is possible for us. Just now we say that if I can explain in the form of the cost I can draw one line that gives C by W equal to L and this is C by R equal to K and now there is one shift that shows the higher budget line towards the right side. So if total cost or the total available amount of the resources to the producers they have increased then it will cause the total shift towards the right side and it will provide now the new intercepts for this L and the new intercept again for this K and in this way we are irrespective of the prices of these two inputs and likewise if total amount available to the producer it reduces then we can see that this total cost it just shifts inside in the similar manner without changing the slope of the budget line. And likewise if we can see that there can be the possibility that there is the change in the prices of both of the factors mean either the prices of the both factors they have increased in a manner that it become double and there is also a form when only one factor price increases keeping the price of the two other factor means the capital constant. So when we explain these two forms we can have this shape that if this is our simple budget line that is having labor and capital and now we assume that the new price of the labor means W prime it is costly or we can have that it is greater than the previous so now keeping this intercept of K constant we will see that it is just changing the slope of the budget line and the new part of the labor will be like this where the W prime is greater than the previous one. And now the double is less than this so it will be like this and in the same way we can have a shape where the price of labor is not going to change rather now the price of capital it is going to change so in both ways now we can have one diagram like this and one diagram like this if it is the decrease in the capital price case then the intercept will shift outward and if it will be the increase in the capital price shape then it will come downwards like this and the intercept of the labor it will not change. And in the same manner if the prices of the both inputs they are just going to double so it means that the denominator is going to double here and it is going to double also here so it will be just like that the budget line will shift inward now the income or the budget available to the producer is the same but due to the change in the prices of the both the inputs it is just like this that the budget has reduced to the half thank you.