In a two good case (i.e. X and Y); if the equation of the budget line is 2x1+3x2=200 What is the unit price of each good? Find the slope of the budget line Show that the slope of the budget line is the ratio of the prices
In a two good case (i.e. X and Y); if the equation of the budget line is 2x1+3x2=200 What is the unit price of each good? Find the slope of the budget line Show that the slope of the budget line is the ratio of the prices
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Theory Of Consumer Choice
Section21.1: The Budget Constraint: What The Consumer Can Afford
Problem 1QQ
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- In a two good case (i.e. X and Y); if the equation of the budget line is 2x1+3x2=200
- What is the unit price of each good?
- Find the slope of the budget line
- Show that the slope of the budget line is the ratio of the prices
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