Suppose there are two goods labeled x y a consumer has a


Suppose there are two goods, labeled x, y. A consumer has a budget of w = 220. Suppose the following two consumption bundles: (x = 4, y = 10), (x = 6, y = 4) all cost the consumer 220. (a) What’s the price ratio between the two goods? Namely what’s py ? Show how you obtain this result. px (b) What’s the price level for good x? What’s the price level for good y? (c) Write out the algebraic expression for this consumer’s budget line.

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Business Economics: Suppose there are two goods labeled x y a consumer has a
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