Question: Draw the budget constraint that is consistent with the following prices and income: income=200, Py=50, Px=25 a) Show how the initial budget constraint is affected

Draw the budget constraint that is consistent with the following prices and income: income=200, Py=50, Px=25 a) Show how the initial budget constraint is affected if the income increases to 500. Is there any change in the slope? b) Demonstrate how the initial budget constraint is affected if the Y price at $20. Is there any change in the slope? c) Demonstrate how the initial budget constraint is affected if the price of X at $40. Is there any change in the slope?

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