Draw a set of axes with the quantities of two goods, A and B, measured on the

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Draw a set of axes with the quantities of two goods, A and B, measured on the axes. Draw a typical budget line. Now show how this budget line would change for each of the following changes in the ceteris paribus conditions:
a. An increase in the price of A, ceteris paribus
b. A decrease in the price of A, ceteris paribus
c. An increase in the price of B, ceteris paribus
d. A decrease in the price of B, ceteris paribus
e. An increase in income, ceteris paribus
f. A decrease in income, ceteris paribus
g. A 10% decrease in the price of both A and B, ceteris paribus.
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Agricultural Economics

ISBN: 978-0136071921

3rd edition

Authors: Evan Drummond, John Goodwin

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