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Write the equation of the budget constraint faced

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Reference no: EM132291037

Emmanuel has K100 to spend on Fanta and doughnut. Fanta and doughnut each cost K5 respectively. Assume Fanta=good Y and doughnut=good X.

a) Write the equation of the budget constraint faced by Emmanuel.

b) What does the budget constraint in (a) represent?

c) Interpret the slope of the budget constraint.

Reference no: EM132291037

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