Let money income be 10 while the price of good 1 is 2 and


Let money income be $10 while the price of good 1 is $2 and the price of 2 is $1. Draw a budget line. Now draw the new budget lines according to each of the following changes in prices and income.

(i) The price of good 1 decreases from $2 to $1

(ii) The price of good 2 increases from $1 to $2 and income increases to $20

(iii) Both prices are doubled but income is tripled

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Business Economics: Let money income be 10 while the price of good 1 is 2 and
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