Let us suppose a consumer has fixed income of Rs.2000. He selects two goods X and Y for consumption having prices with Rs.400 and Rs.200…
BIT Economics · 2079 · Solved Question with Answer
Let us suppose a consumer has fixed income of Rs.2000. He selects two goods X and Y for consumption having prices with Rs.400 and Rs.200 respectively.
a. Derive budget line.
b. Show his equilibrium point when he allocates entire budget equally on two goods.