Find two points on the new budget line

Reference no: EM131142386

Choose two normal goods and draw a budget constraint illustrating the trade-off between them. Show how the budget line shifts if income increases. Arbitrarily choose a point on the first budget line as the point a particular consumer will select. Now find two points on the new budget line such that the new preferred choice of the consumer must fall between these points.

Reference no: EM131142386

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