Change in price and total expenditure

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1.  Explain how a change in price affects total expenditure by filling in each cell with the resulting change in total expenditure.

Demand is ...

Increase in Price

Decrease in Price










2.  You buy only apples and bananas.  Your budget is such that you can purchase 3 apples and 4 bananas or 9 apples and 2 bananas.  Write down the equation for the budget line with bananas on the y-axis.  Is that equation unique?

Reference no: EM1311285

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