Assume that an individual has budget of $100 to spend on softdrink (Y) and pizza (X) The market pric
Assume that an individual has budget of $100 to spend on softdrink (Y) and pizza (X) The market prices are $ 20 and $25respectively. How much units does an individual spend each, using entire hisbudget? Show graphically the individual’s budget line for the twoproducts. State Marginal rate of Substitution MRS for the twogoods How does the slope change if the price of apple rises to$10? How does the slope change if the budget increases by 50%? i.e.income is $200 . . .
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