In a two good case (i.e. X and Y); if the equation of the budget line is 2x1+3x2=200 What is the unit price of each good? Find the slope of the budget line Show that the slope of the budget line is the ratio of the prices

In a two good case (i.e. X and Y); if the equation of the budget line is 2x1+3x2=200 What is the unit price of each good? Find the slope of the budget line Show that the slope of the budget line is the ratio of the prices

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In a two good case (i.e. X and Y); if the equation of the budget line is 2x₁+3x₂=200
1. What is the unit price of each good?
2. Find the slope of the budget line
3. Show that the slope of the budget line is the ratio of the prices

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