Let money income be $10 while the price of good 1 is $2 and the price of

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Let money income be $10 while the price of good 1 is $2 and the price of 2 is $1. Draw a budget line. Now draw the new budget lines according to each of the following changes in prices and income.

(i) The price of good 1 decreases from $2 to $1

(ii) The price of good 2 increases from $1 to $2 and income increases to $20

(iii) Both prices are doubled but income is tripled

Related Book For answer-question

Microeconomics

ISBN: 978-0132857123

8th edition

Authors: Robert Pindyck, Daniel Rubinfeld

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Posted Date: Jan 05, 2021 12:40 AM

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Let money income be $10 while the price of good 1 is $2 and the price of

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Microeconomics

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