Suppose that the price of commodity Y is $2 per unit while the price of commodity X is $4 per unit and suppose that an individual’s money income is $100 per time period and is all spent on X and Y. Draw the budget constraint line for this consumer at the initial point. 2.If the price of Y decreases to $3, incorporate BL2 showing change in the Budget line.
Suppose that the price of commodity Y is $2 per unit while the price of commodity X is $4 per unit and suppose that an individual’s money income is $100 per time period and is all spent on X and Y. Draw the budget constraint line for this consumer at the initial point. 2.If the price of Y decreases to $3, incorporate BL2 showing change in the Budget line.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 1SQP
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Suppose that the price of commodity Y is $2 per unit while the price of commodity X is $4 per unit and suppose that an individual’s money income is $100 per time period and is all spent on X and Y.
- Draw the budget constraint line for this consumer at the initial point.
2.If the price of Y decreases to $3, incorporate BL2 showing change in the Budget line.
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