Question

a person has 100$ to spend on two goods x and y whose respective price are 3$ and 5$. what happen to the original budget line if the budget falls by 25%?​

Answer 1

If the budget falls by 25%, then the new budget line would be:

x: 3*0.75 = 2.25

y: 5*0.75 = 3.75

Step-by-step explanation: