Question
Suppose that the consumer has an income m = 60, and that the prices for goods 1 and 2 are px = 8 and py
Suppose that the consumer has an income m = 60, and that the prices for goods 1 and 2 are px = 8 and py = 24 respectively.
(a) Write down the budget line for the consumer
(b) Graph the budget line for the consumer
(c) Identify the optimal consumption bundle for the consumer given their budget constraint; you may do so graphically or analytically.
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Intermediate Microeconomics and Its Application
Authors: walter nicholson, christopher snyder
11th edition
9781111784300, 324599102, 1111784302, 978-0324599107
