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Budget Constraint
1. Provide an interpretation for the budget constraint.
2. Explain what the slope of the budget constraint is.
3. What is a point of tangency?
4. Explain what sign cant about the point of tangency is between highest in difference curve and the budget constraint.
5. At this point of tangency, what is sign cant about the slopes of the two curves?
Though your answer needs to be correct in terms of economic theory (so be sure to read the assigned chapters), creativity and having fun with it is strongly encouraged.
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