\\(\\begin{array}{l}{\\mathrm{M}_{2}=\\mathrm{Rs} 40} \\\\ {\\mathrm{P}_{1}=\\mathrm{Rs} 4} \\\\ {\\mathrm{P}_{2}=\\mathrm{Rs} 5} \\\\ {\ ext { Initial equation of the budget line: }} \\\\ {4 \\mathrm{x}_{1}+5 \\mathrm{x}_{2}=20} \\\\ {\ ext { New equation of the budget line: }} \\\\ {4 \\mathrm{x}_{1}+5 \\mathrm{x}_{2}=40}\\end{array}\\)
As M has increased, the consumer can now purchase more of both the goods and the budget line will shift parallelly outwards to A’B’ from AB.
Horizontal intercept will be \\(=\\frac{M}{P_{2}}=\\frac{40}{4}=10\\)
Vertical intercept will be \\(=\\frac{M}{P_{2}}=\\frac{40}{5}=8\\)
The slope of the new budget line will be the same as that of the old budget line.
\\(-\\frac{P_{1}}{P_{2}}=\\frac{4}{5}\\)