If the income of the consumer is Rs. 50
the price of good 1 is Rs.10 and
the price of good 2 is Rs.5.
(a)Find the equation of the budget line
(b)Find the consumption bundles along the budget line
(c)If the income of the consumer increases to Rs.60 what will happen to the budget line.Draw the diagram
(d)If the price of the good 2 changes to Rs 10 what will be the changes in the budget line.Draw the diagram
(e)If the price of good 1 changes to Rs 5 what will be the change in the budget line
Answers
Explanation:
price of good 1 is Rs.10 and
the price of good 2 is Rs.5.
(a)Find the equation of the budget line
(b)Find the consumption bundles along the budget line
(c)If the income of the consumer increases to Rs.60 what will happen to the budget line.Draw the diagram
(d)If the price of the good 2 changes to Rs 10 what will be the changes in the budget line.Draw the diagram
(e)If the price of good 1 changes to Rs 5 what will be the change in the budget line price of good 1 is Rs.10 and
the price of good 2 is Rs.5.
(a)Find the equation of the budget line
(b)Find the consumption bundles along the budget line
(c)If the income of the consumer increases to Rs.60 what will happen to the budget line.Draw the diagram
(d)If the price of the good 2 changes to Rs 10 what will be the changes in the budget line.Draw the diagram
(e)If the price of good 1 changes to Rs 5 what will be the change in the budget line price of good 1 is Rs.10 and
the price of good 2 is Rs.5.
(a)Find the equation of the budget line
(b)Find the consumption bundles along the budget line
(c)If the income of the consumer increases to Rs.60 what will happen to the budget line.Draw the diagram
(d)If the price of the good 2 changes to Rs 10 what will be the changes in the budget line.Draw the diagram
(e)If the price of good 1 changes to Rs 5 what will be the change in the budget line price of good 1 is Rs.10 and
the price of good 2 is Rs.5.
(a)Find the equation of the budget line
(b)Find the consumption bundles along the budget line
(c)If the income of the consumer increases to Rs.60 what will happen to the budget line.Draw the diagram
(d)If the price of the good 2 changes to Rs 10 what will be the changes in the budget line.Draw the diagram
(e)If the price of good 1 changes to Rs 5 what will be the change in the budget line
price of good 1 is Rs.10 and
the price of good 2 is Rs.5.
(a)Find the equation of the budget line
(b)Find the consumption bundles along the budget line
(c)If the income of the consumer increases to Rs.60 what will happen to the budget line.Draw the diagram
(d)If the price of the good 2 changes to Rs 10 what will be the changes in the budget line.Draw the diagram
(e)If the price of good 1 changes to Rs 5 what will be the change in the budget line
price of good 1 is Rs.10 and
the price of good 2 is Rs.5.
(a)Find the equation of the budget line
(b)Find the consumption bundles along the budget line
(c)If the income of the consumer increases to Rs.60 what will happen to the budget line.Draw the diagram
(d)If the price of the good 2 changes to Rs 10 what will be the changes in the budget line.Draw the diagram
(e)If the price of good 1 changes to Rs 5 what will be the change in the budget line