Draw a Budget Constraint That Is Consistent with the Following

question 117

Essay

Draw a budget constraint that is consistent with the following prices and income:
Income = $200
PY = $50
PX = $25
a.Demonstrate how your original budget constraint would change if income increases to $500.
b.Demonstrate how your original budget constraint would change if PY decreases to $20.
c.Demonstrate how your original budget constraint would change if PX increases to $40.

---

Definitions:

Unique Factor

A distinct element or characteristic that differentiates one object, situation, or individual from others.

Subjective Norms

Beliefs about whether important people approve or disapprove of a certain behavior, which can influence an individual's intention to engage in that behavior.

Transtheoretical Model

A theory of behavioral change that assesses an individual's readiness to act on a new healthier behavior, through stages like precontemplation, contemplation, preparation, action, and maintenance.

James Prochaska

A psychologist best known for his role in developing the Transtheoretical Model of behavior change.