Imelda spends her entire income on shoes and hats. Draw the budget line for each of the

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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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Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

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Question Posted: Nov 14, 2014 08:22 AM

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Imelda spends her entire income on shoes and hats. Draw the budget line for each of the

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a Budget line is AB in graph below The vertical intercept A is the amount of ...View the full answer

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