Key Problems |
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Budget Lines
Assume the Price of X (Px) is $1 and the Price of Y (Py) is $2 and you have $10 to spend. (income - $10).1. Draw the budget line.2. What happens to the budget line if your income decreases to $6?3. Assume your income is $10, and the Px is $1 and Py is $2. What happens to the budget line if Py decreases to $1?4. Assume your income is $10, and the Px is $1 and Py is $2. What happens to the budget line if Px increases to $2? |
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