Question

A consumer is willing to consume two goods. Both items are priced
ar 4 and 5 respectively. The income of the consumer is 20.
(1) Write the equation of the budget line.
(ii) If the consumer spends his entire income on item 1. how much
quantity can he consume?
(iii) If the consumer spends his entire income on item 2, how much
quantity can he consume?
(iv) What is the slope of the budget line?​​

Answer 1

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