Question
A consumer originally faces the budget line P X X + P Y Y = M. The price of good X doubles, the price of
A consumer originally faces the budget line PXX + PYY = M. The price of good X doubles, the price of good Y quadruples, and income becomes 3 times larger. Write down an equation for the new budget line in terms of the original prices and income.
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Technical Change, Relative Prices, And Environmental Resource Evaluation
Authors: V Kerry Smith
1st Edition
1317358570, 9781317358572
