Draw the budget constraints associated

Reference no: EM132471458

Suppose a consumer's preferences are given by U(X,Y) = X*Y. Therefore the MUX = Y and MUY = X. Suppose the price of good Y is $1 and the consumer has $80 to spend (M = 80). Sketch the price-consumption curve for the values

PX = $1

PX = $2

PX = $4

Draw the budget constraints associated with each of the prices for good X, and indicate the bundle that the consumer chooses in each case. Also, be sure to label your graph accurately.

Reference no: EM132471458

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