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Consider an individual making choices over two goods, x and y with prices p= 4 and py= 5, and who has income I= 120. What
Consider an individual making choices over two goods, x and y with prices p= 4 and py= 5, and who has income I= 120. What is the budget constraint for this individual? Graph the budget constraint, with y on the vertical axis, and x on the horizontal axis. Illustrate what happens to the budget constraint if the price of x increases to $6 and the price of decreases to $4
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