Question
You have $10 to spend on goods A and B. The budget constraint is 2A-B=10, assuming non-negative values for A and B. (a) Draw this
You have $10 to spend on goods A and B. The budget constraint is 2A-B=10, assuming non-negative values for A and B. (a) Draw this budget constraint in (A,B) space. (b) Mark the affordable region and the unaffordable regions. (c) Is this a sensible budget constraint? Does it make any sense? Would we ever see such a budget constraint?
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Forecasting for Economics and Business
Authors: Gloria Gonzalez Rivera
1st edition
131474936, 978-1315510415, 1315510413, 978-0131474932
