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Question: A consumer can buy good A at £3 a unit and good B at £2 a unit and has a budget of £60. What is the slope of the budget constraint if quantity of A is measured on the horizontal axis? What happens to this slope if

(a) the price of A falls to £2?

(b) with A at its original price the price of B rises to £3?

(d) the budget is cut by 25%?

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Basic Finance, Finance

Category:- Basic Finance
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