Question

1. A person has $ 100 to spend on two goods X and Y whose respective prices are $3 and $5
a. Draw the budget line.

b. What happens to the original budget line if the budget falls by 25%?

c. What happens to the original budget line if the price of X doubles?

d. What happens to the original budget line if the price of Y falls to $4?

Answer 1

Answer:

c. is your answer.

I hope it will help you.

Answer 2

Answer:

A person has $100to spend on two goods x and y whose respective prices are $3 and $5.