Your budget is such that if you spend your entire income, you can afford either 4 units of good x and 6 units of good y or 12 units of x and 2 units of y.
(a) Mark these two consumption bundles and draw the budget line in the graph below.
(b) What is the ratio of the price of x to the price of y
(c) If you spent all of your income on x, how much x could you buy?
(d) If you spent all of your income on y, how much y could you buy?
(e) Write a budget equation that gives you this budget line, where the price of x?
(f) Write another budget equation that gives you the same budget line, but where the price of x?