(Answered) Suppose a consumer has 600 dirhams to spend on goods x and

Management Studies

Suppose a consumer has 600 dirhams to spend on goods X and Y. the market prices for these goods are P_x = 10 and P_y = 40

a) Write the equation for the consumer budget line.

b) Illustrate the consumer's opportunity set

c) Show how the consumer's budget set changes when the P_x increases to 20.

d) How does this change affect the MRS between the two goods?

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Business Management, Management Studies

Category:- Business Management
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