Given the following budget line PxX + Pyy = m And that the slope of the budget line depends only on relative prices, show what happens to the budget line when: (a) Px rises (b) m reduces (c) Both px and py rise by the same proportion X, (d) a consumer is given an in-kind transfer of 40 units of good y (e) the government imposes a quantity tax (t) on good y
Given the following budget line PxX + Pyy = m And that the slope of the budget line depends only on relative prices, show what happens to the budget line when: (a) Px rises (b) m reduces (c) Both px and py rise by the same proportion X, (d) a consumer is given an in-kind transfer of 40 units of good y (e) the government imposes a quantity tax (t) on good y
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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