What is the effect on the slope of the budget constraint

Reference no: EM133659868

Problem: In this section, consider a consumer who cares about two items: apples and bus rides. Their weekly income is $100 and the price of an apple is $1 while the price of the bus is $2. Draw the agent's budget constraint (draw apples on the x-axis and bus rides on the y-axis), and provide an answer to the scenarios: Suppose that the price of a bus ride increases to $4, what is the effect on the slope of the budget constraint?

Reference no: EM133659868

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