Question
In year 1,the price of good x was $4, the price of good y was $1and income was $80.In year 2, the price of good
In year 1,the price of good x was $4, the price of good y was $1and income was $80.In year 2, the price of good x was $10,the price of good y was $2and income was $80.On a graph with x on the horizontal axis and y on the vertical axis, the budget line in year 2is _____
a.flatter than the one in year 1 and lies above it.
b.steeper than the one in year 1 and lies below it.
c.flatter than the one in year 1 and lies below it,
d.steeper than the one in year 1 and lies above it.
Robert's utility function isU(x,y)=Min{x,2y}.Robert'sincome is $30 and the price of x and the price of y are equal to $1. At his optimal choice, how many units of good y will Robert consume?
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