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Bob buys x and y. She can just afford the bundle x = 12 and y = 22. She can also afford x = 24
Bob buys x and y. She can just afford the bundle x = 12 and y = 22. She can also afford x = 24 and y = 16. Each of these bundle exhausts her income. What is the ratio of the price of x to the price of y? If Bob spent all her money on x, how much x could she buy? If she spends all her money on y, how much y could she buy? Draw Bob's budget line. Write an equation that gives you Bob's budget line when the price of x is 1
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