Suppose you buy both shoes and chocolates. If your budget is Rs 10000 the price of shoes is Rs 2000 and the price of chocolate is 100 a) Draw budget line with X and Y intercepts and calculate the slope b) Suppose your optimal choice of combination is 2 pair of shoes, how many packs of chocolates will you buy?

Suppose you buy both shoes and chocolates. If your budget is Rs 10000 the price of shoes is Rs 2000 and the price of chocolate is 100 a) Draw budget line with X and Y intercepts and calculate the slope b) Suppose your optimal choice of combination is 2 pair of shoes, how many packs of chocolates will you buy?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter4: Utility Maximization And Choice

Section: Chapter Questions

Problem 4.3P

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