Question: Imelda spends her entire income on shoes and hats Draw

Imelda spends her entire income on shoes and hats. Draw the budget line for each of the following situations, identifying the intercepts and the slope in each case.
a. Monthly income is $ 1,000, the price of a pair of shoes is $ 8, and the price of a hat is $ 10.
b. Same conditions as in part (a), except that income is $ 500.
c. Same conditions as in part (a), except that income is $ 2,000 and the price of a pair of shoes is $ 16.
d. Same conditions as in part (a), except that hats cost $ 5 each.




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  • CreatedNovember 14, 2014
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