Question

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Please help me in e). you forgot yesterday

Define a budget line

d.Given that Tebogo's income is P1800 price of food is P30 and price of entertainment is P40, Draw tebogos budget line.

e.Using a diagram, show what woul happen to Tebogo budget line if the price of food decreases to 20 while the price of entertainment remain unchanged.

f.Using a diagram, show what would happen to Tebogo's budget line if income increases from P1800 to P2100 while prices remain P30 for food and P40 for entertainment.

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Indifference Curves and Budget Line

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