what is difference between budget line and indefference curve?
A budget line represents those combinations of two goods that the consumer can afford to purchase given his income and the price of the two goods.
On the other hand, an indifference curve represents those combinations of two goods that provide the consumer with the same level of satisfaction.
Both budget line and indifference curve represent consumption combinations of two goods. But while on one hand, the budget line represents the consumption combinations based on the affordability of the consumer, on the other hand, indifference curve represents the consumption combinations based on the level of satisfaction. It is possible that the consumption combinations represented by the indifference curve are actually not affordable by the consumer given his income and the prices of the two goods.