Question

If a consumer faces the budget line equation: 20X + 10Y=500. Answer the

following questions:-

A. What will be the slope of budget line? 1

B. How many units would he be able to buy if the entire sum of ₹ 500 is to be

spent on good X only? Show calculations. 1

C. Construct a new budget line equation if the price of good Y falls by 50%.

Also, write the slope of the new budget line equation.​

Answer 1

Explanation:

20X + 10Y=500. Answer the

following questions:-

A. What will be the slope of budget line? 1

B. How many units would he be able to buy if the entire sum of ₹ 500 is to be

spent on good X only? Show calculations. 1

C. Construct a new budget line equation if the price of good Y falls by 50%.

Also, write the slope of the new budget line equation