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 (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 yplease take note of the image Given the following budget line PxX + Pyy = mAnd that the slope of the budget line depends only on relative prices, show whathappens to the budget line when:(a) Px rises(b) m reduces(c) Both px and p, rise by the same proportion(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 that the budget line is xpx+ypy=m, the slope of the line is -pxpy and the x and y intercepts…

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 (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 (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

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter7: Consumer Choice: Maximizing Utility And Behavioral Economics

Section: Chapter Questions

Problem 6QP

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Question

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
(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

please take note of the image

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 p, rise by the same proportion
(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

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