Parvez, a pharmacology student, has allocated $120 per month to spend on paperback novels and used CDs.

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Parvez, a pharmacology student, has allocated $120 per month to spend on paperback novels and used CDs. Novels cost $8 each; CDs cost $6 each. Draw his budget line.

a. Draw and label a second budget line that shows what happens when the price of a CD rises to $10.

b. Draw and label a third budget line that shows what happens when the price of a CD rises to $10 and Parvez’s income rises to $240.

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Macroeconomics Principles and Applications

ISBN: 978-1133265238

5th edition

Authors: Robert e. hall, marc Lieberman

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Question Posted: Dec 11, 2012 12:18 AM

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Parvez, a pharmacology student, has allocated $120 per month to spend on paperback novels and used CDs.

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Macroeconomics Principles and Applications

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