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Q. Suppose you have $200 and you want to buy two products A and B. Price of Good A is $20 and Price of Good B is $50.
1. Construct the Budget Constraint and Show all the combination of quantities of both Goods you can buy.
2. Construct Budget Line
3. When can Budget line shift rightwards or leftwards and the new budget line becomes parallel to the previous budget line? Show graphically.
4. When can Budget Line move inwards or outwards and the slope of Budget Line changes? Show graphically.
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