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What is Budget line

Budget line: This refers to all combinations of goods that a consumer can purchase with his whole income and price of two goods.

   Related Questions in Microeconomics

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    Question: (a)  Suppose the income elasticity of demand for pre-recorded music compact disks is +4 and the income elasticity of demand for a cabinet maker's work is +0.4.  Compare the impact on pre-recorde

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    why demand change of onion in during one week due to change in it's price?

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    This purely competitive peach orchard would most likely exit this industry within the long run when the wholesale price per bushel of peaches fell below: (i) $9.00 per bushel of peaches. (ii) $10.00 per bushel of peaches. (iii) $11.00 per bushel of pe

  • Q : Equilibrium quantity and price

    Elucidate the consequence of an increase in demand of a commodity on its equilibrium quantity and price? Answer: Increase in demand causes a rightward shift in the

  • Q : Change of tastes and preferences in

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    Placing an excise tax upon goods along with low-income elasticities of demand will share out the tax burden as: (1) proportionally between high-income and low-income households. (2) disproportionately on high-income households. (3) disproportionately

  • Q : Define marginal revenue Marginal

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  • Q : Influence of drought in market price

    Severe drought outcomes in a drastic fall in the output of wheat. Examine how will it influence the market price of wheat? Answer: As an outcome of severe drought,