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A person has$250to spend on two goods ( x and y ) whose respective prices are$2per unit and$5per unit. (a)Draw the budget line showing all
A person has$250to spend on two goods (xandy) whose respective prices are$2per unit and$5per unit.
- (a)Draw the budget line showing all the different combinations of the two goods that can be bought with the given budget.
- (b)What happens to the budget line if the budget (money available to spend) increases by100%.
- (c)What happens to the budget line if the price of goodxdecreases by50%?
- (d)What happens to the budget line if the price of goodyincreases to$10per unit?
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
