ECON-Week-7 - The Budget line also pivots along the axis of...

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Economics: Class Notes 10/10 10/10/2007 11:39:00 P = $5 P y  = $10 Budget = $100 The opportunity cost is –P x /P = -1/2 Every Point on and below the budget line is affordable to us. If Our Income goes up, we have more to spend. Budget line shifts out.
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Unformatted text preview: The Budget line also pivots along the axis of the good whos price is decreasing. If MB > MC Do IT!...
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This note was uploaded on 01/16/2012 for the course ECON 2000 taught by Professor Roussell during the Fall '06 term at LSU.

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