Given the following budget line ???+???=? And that the slope of the budget line depends only on relative prices, show what happens to the budget line when: (a) ?? rises (b) ? reduces (c) Both ?? and ?? rise by the same proportion (d) a consumer is given an in-kind transfer of 40 units of good ? (e) the government imposes a quantity tax (t) on good ?
Given the following budget line ???+???=? And that the slope of the budget line depends only on relative prices, show what happens to the budget line when: (a) ?? rises (b) ? reduces (c) Both ?? and ?? rise by the same proportion (d) a consumer is given an in-kind transfer of 40 units of good ? (e) the government imposes a quantity tax (t) on good ?
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 3SQP
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Given the following budget line ???+???=?
And that the slope of the budget line depends only on relative prices, show what happens to the budget line when:
- (a) ?? rises
- (b) ? reduces
- (c) Both ?? and ?? rise by the same proportion
- (d) a consumer is given an in-kind transfer of 40 units of good ?
- (e) the government imposes a quantity tax (t) on good ?
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