Budget constraint-nbspprovide an interpretation for the, Business Economics

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Budget constraint-nbspprovide an interpretation for the

Budget Constraint

1. Provide an interpretation for the budget constraint.

2. Explain what the slope of the budget constraint is.

3. What is a point of tangency?

4. Explain what is sign cant about the point of tangency between the highest indifference curve and the budget constraint.

5. At this point of tangency, what is sign cant about the slopes of the two curves?

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