Set 2: Budget line & Indifference curve 1 Diagram the following budget constraints: $4,000; Px $50; Py = $100 $25; Py = $200 = $150 Income = %3D a %3D %3D X. Income = $3,000; Px Income = $2,000; Px = $40; Py %3D %3D %3D %3D %3D Find out the slope of each of the budget lines. Explain graphically what happens to the budget line if Income of consumer a, b, and c increases by $1000. Price of good y increases by $50 in each of the cases. (1) (ii)
Set 2: Budget line & Indifference curve 1 Diagram the following budget constraints: $4,000; Px $50; Py = $100 $25; Py = $200 = $150 Income = %3D a %3D %3D X. Income = $3,000; Px Income = $2,000; Px = $40; Py %3D %3D %3D %3D %3D Find out the slope of each of the budget lines. Explain graphically what happens to the budget line if Income of consumer a, b, and c increases by $1000. Price of good y increases by $50 in each of the cases. (1) (ii)
Chapter3: Preferences And Utility
Section: Chapter Questions
Problem 3.4P
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