MGT207 Business Statistics

Business StatisticsTU Board 2081

16. Let a consumer selects two goods, i.e. x and y for consumption having prices of Rs. 1600 and Rs. 800 respectively and fixed income with Rs. 16,000. a. Derive budget line and determine…

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  1. Let a consumer selects two goods, i.e. x and y for consumption having prices of Rs. 1600 and Rs. 800 respectively and fixed income with Rs. 16,000. a. Derive budget line and determine equilibrium point when he allocates entire budget equally on two goods. b. Let, price of x good falls to Rs, 800. Derive the two budget line and determine new equilibrium point when he spends Rs. 6,400 on x good and Rs. 9,600 on y good. c. Derive price demand curve for x good. [4+4+2]
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