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(a) Write down your budget equation (i.e. budget line). Let 9:1 denote the number of movies consumed, and let $2 denote the number of ice
(a) Write down your budget equation (i.e. budget line). Let 9:1 denote the number of movies consumed, and let $2 denote the number of ice cream cones consumed. (b) If you spent all of your income on commodity 1, how much could you buy? (c) If you spent all of your income on commodity 2, how much could you buy? (d) Draw in blank ink your budget line. Label the xaxis \"Movies\" and the yaxis \"Ice Cream\". (e) Suppose the price of movies falls to p1 = $10 and everything else remains the same. Write down the equation of your new budget constraint. Draw your new budget line in red ink/ pencil in the same graph as part (d). (f) Does the new budget line rotate or shift parallel relative to the budget line in part ((1)? (g) Now instead, suppose your income falls to $30 while prices remain p1 = $15 and p2 = $10. Write down the equation of your new budget constraint. Draw your new budget line in blue ink in the same graph as part (d). (h) Does the new budget line rotate or shift parallel relative to the budget line in part (d)
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