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Suppose a consumer has an income of $500 and races prices p_x = 5 and p_y = 10. Write the equation for the budget constraint.
Suppose a consumer has an income of $500 and races prices p_x = 5 and p_y = 10.
- Write the equation for the budget constraint.
- Draw the budget constraint, placing good x on the horizontal axis.
- What is the slope of the budget constraint?
- Suppose income decreases to $300. Draw the new budget constraint.
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Historical Perspectives On The American Economy Selected Readings
Authors: Robert Whaples, Dianne C Betts
1st Edition
0521466482, 9780521466486
