EBK ECONOMICS
4th Edition
ISBN: 8220101443649
Author: KRUGMAN
Publisher: YUZU
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Chapter 10, Problem 3P
To determine
Concept Introduction:
Budget Constraint: It is defined as the combination of all goods that a consumer can afford, given the
Here,
is the quantity of good X. 
is the quantity of good Y. 
is the total income. 
is the price of good X. 
is the price of good Y.
- If the total expenditure is equal to the total income, then it is within the consumption possibilities and it lies on the budget line.
- If the total expenditure is less than the total income, then it is within the consumption possibilities, but lies below the budget line.
- If the total expenditure is more than the total income, then it is out of the consumption possibilities and lies above the budget line.
Budget Line: It is defined as the combination of all the goods that a consumer can buy exhausting all his income. Formula for the budget line is:
Here,
is the quantity of good X. 
is the quantity of good Y. 
is the total income. 
is the price of good X. 
is the price of good Y.
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Chapter 10 Solutions
EBK ECONOMICS
Ch. 10.A - Prob. 1PCh. 10.A - Prob. 2PCh. 10.A - Prob. 3PCh. 10.A - Prob. 4PCh. 10.A - Prob. 5PCh. 10.A - Prob. 6PCh. 10.A - Prob. 7PCh. 10.A - Prob. 8PCh. 10.A - Prob. 9PCh. 10.A - Prob. 10P
Ch. 10.A - Prob. 11PCh. 10.A - Prob. 12PCh. 10.A - Prob. 13PCh. 10.A - Prob. 14PCh. 10.A - Prob. 15PCh. 10.A - Prob. 16PCh. 10.A - Prob. 17PCh. 10 - Prob. 1BCQCh. 10 - Prob. 2BCQCh. 10 - Prob. 3BCQCh. 10 - Prob. 1PCh. 10 - Prob. 2PCh. 10 - Prob. 3PCh. 10 - Prob. 4PCh. 10 - Prob. 5PCh. 10 - Prob. 6PCh. 10 - Prob. 7PCh. 10 - Prob. 8PCh. 10 - Prob. 9PCh. 10 - Prob. 10PCh. 10 - Prob. 11PCh. 10 - Prob. 12PCh. 10 - Prob. 13PCh. 10 - Prob. 14PCh. 10 - Prob. 15PCh. 10 - Prob. 16PCh. 10 - Prob. 17P
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