Draw a Budget Constraint That Is Consistent with the Following

question 139

Essay

Draw a budget constraint that is consistent with the following prices and income.Income = 100
PY = 25
PX = 12.5
a.Demonstrate how your original budget constraint would change if income increased to 250.
b.Demonstrate how your original budget constraint would change if PY decreased to 10.
c.Demonstrate how your original budget constraint would change if PX increased to 20.