Changes in income and price of goods

Reference no: EM1317194

Suppose a consumer has a daily income of $100 and purchases just two goods A and B. The price of good A is $5 and the price of good B is $4.

(a) What is the slope of the budget line?
(b) Suppose the consumer's income decreases to $80.What is the new slope?
(c) Suppose the price of product B decreases to $2.What is the new slope?

Reference no: EM1317194

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