Graph your budget constraint in this circumstance

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Reference no: EM131001134

Assume that you have $100 to spend on food and clothing. The price of food is $5 and the price of clothing is $10.

a. Graph your budget constraint.

b. Suppose that the government subsidizes clothing such that each unit of clothing is half-price, up to the first 5 units of clothing. Graph your budget constraint in this Circumstance.

Reference no: EM131001134

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