Draw the consumer’s budget constraint and indicate the consumer’s optimal bundle on the budget constraint. Make sure your graph is accurate and clearly labeled.
Homework Answers
See diagram in the pic attached here.
Note that slope of budget line is - Px/Py = - 1/2 and slope of Indifference curve is MRS=-2/3 .So, IC is steeper than budget line
If you have any doubt feel free to ask.
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Draw the consumer’s budget constraint and indicate the
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