The price line shows all those combinations of two goods that the consumer can buy by spending his given money income on the two goods at their given prices. Suppose, a consumer has Rs.50 to spend on goods X and Y. Let the prices of goods X and Y be Rs.10 per unit and Rs. 5 per unit respectively. If he spends his whole income (Rs.50) on X, he would buy five units of X, and if he spends his whole income on Y, he would buy ten units of Y. If a straight line joining 5 units of X and 10 units of Y is drawn, we get what is called the price line or budget line.

Fig: Budget Line