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If we write the budget line as 191351 + p2x2 = m, implicitly differentiating the equation with respect to x1 gives us: 6 6 (531)x1+P1(5:l)+(p2x)(x2)+P2(5:2)=

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If we write the budget line as 191351 + p2x2 = m, implicitly differentiating the equation with respect to x1 gives us: 6 6 (531)x1+P1(5:l)+(p2x)(x2)+P2(5:2)= ng1_ 5'" 0, we can also write: Because 5x X1 (2? )(x1) + p1(:;) (j )(x2) p2(:j 1 6 6 6 . . . Because 1" =0, p2 =0, and x1 1,thISSImpIIesto 6)\" 5x1 5xl _ _ 6_ _ _P_1 p1 192(5j'C l), which can be rewritten as x an p2. However suppose the price of x1 varies with the quantity purchased, 50 61,1 75 0? Suppose the price of x1 is discounted 10% for each unit purchased, so that p1 = 100(0.9*1 ). The budget line becomes: 100(0.9*1 )(x1) + 10x2 = 487. Using implicit differentiation, as described above, and knowing that Cu* = In(u)(u*) x , the slope of the budget line when x1 = 5 is Round your answer to two decimal places

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