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Suppose markets are efficient,there are no taxes,and relative prices remain constant.In such a world,
Budget Line
A graphical representation showing all possible combinations of two goods that can be purchased given a consumer's income and the prices of the goods.
Price
The sum of money anticipated, needed, or provided as payment for an item.
Shift Outward
An economic term referring to the expansion of a production possibility frontier, indicating an increase in an economy's capacity to produce.
Budget Lines
Graphical representations of all possible combinations of two goods that a consumer can afford given their income and the prices of the goods.
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