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Consider the following diagram from lecture 2 is it

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Consider the following diagram fromLecture 2.Is it budget feasible for the consumer tobuy10 units of S and 12 units of T?No(10 units of S is theamount of S that we canbuy when we spend all Mon S; no T can be feasible)Consider the following diagram fromLecture 2.What is the equation of the Price line?T=-2*S+20(T=M/PT-PS/PT*S ; M/P=20 in graph, and PS/PT=2)T
Consider Diagram 2. The new relativeprice P_S/P_T is...145/200(145=M/PT; at the newprices, 200=M/PS. {M/PT}/{M/PS}=(M/PT)*(PS/M )=PS/PT. But thenPS/PT=145/200)Consider Diagram 2. Given that M=$200,what is the Price of Textiles?
145=$200/PT, which means
Consider this diagram from Lecture 2.At point Y, the marginal cost is __________than the slope of the price line and thequantityof textiles produced is ______________

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Term
Fall
Professor
Staff
Tags
Economics, Utility, autarky

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