Originally PX is €120 and PY is €80. True or false: If PX increases by €18 and PY increases by €12, the new budget line will be shifted inward and parallel to the old budget line. Explain.
Intermediate Micro economics Q1. The Acme Seed Company charges €2/kg for the first 10 kg you buy of marigold seeds each week and €1/kg for every kilogram you buy thereafter. If your income is €100/wk, draw your budget constraint for the composite good and marigold seeds. Q2. Same as Problem 1, except now the price […]