What are the values of the slopes of the budget lines

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Suppose the price of X is $30 and the price of Y is $60. Using this information and the indifference curves denoted by U1 and U2 and the budget constraint lines given in the diagram below answer the following questions. a. If U1 is the highest level of utility the consumer can achieve, what is the consumer’s income? b. How many units of Y is the consumer buying at the utility maximizing point A? c. If the consumer’s budget line now shifts up and becomes tangent to the utility (indifference) curve indicated by U2, what is the consumer’s income now? d. When the consumer is maximizing utility under this budget constraint, he is purchasing 14 units of Y as shown by point B in the graph. How many units of X is also the consumer purchasing at point B? e. What are the values of the slopes of the budget lines shown in the diagram, and what does the slope of a budget line tell us?

Reference no: EM13149847

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