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291 = 92 And so substituting into the budget constraint P1q1 + 10q2 = Y: P191 + 10 291 = Y P1q1 + 5q1 =

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291 = 92 And so substituting into the budget constraint P1q1 + 10q2 = Y: P191 + 10 291 = Y P1q1 + 5q1 = Y (P1 + 5)q1 = Y Y 91 = P1 + 5 With Y=600 and P1=20, q1=24. We can see that as Y increases, q1 increases. As p1 increases, q1 decreases (normal and ordinary)

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