Can someone please help me with this economy questions i just cant understand them.
M-Quantity of medical services, O-quantity of other goods purchased by a consumer ina given year, B-Budget- be in thousands of dollars and the price of medical services and other goods be in terms of dollars per unit, with B=60, Pm=6, Po=10.
1.How will the graph look like and what should be the slope?
2.What will be the result if the price of medical services (Po) decreases to $5?
3. How will 2 indifference curves be like in the grapgh that are tangent to the budget line and whats the result??
Thanks to those who helped!!!
2007-02-28
05:10:33
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1 answers
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asked by
Katy
1