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Slope of the budget line and the indifference curve

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Reference no: EM131207241

Bill is always willing to give up more than one orange to get an apple.

a. Interpret the above statement graphically and then mathematically in terms of Bill's MRS of apples to oranges (have apples on the x-axis).

b. If the P-oranges = $1 & P-apples = $1, might Bill buy any oranges?

c. Explain and include a graph in your answer. (Hint: use the slope of the budget line and the indifference curve.) c. If instead, P-apples=$2, might Bill buy any oranges? Explain and include a graph.

Reference no: EM131207241

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