Question 5 Tries remaining: 2 Points out of 10.00 Suppose that a there are two g

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Question 5 Tries remaining: 2 Points out of 10.00 Suppose that a there are two goods, X and Y. The price of Good X is $10 and the price of Good Y is $5. The seller of Good X offers a deal where if a consumer buys 1 unit of Good X they pay full price, but the second unit of Good X is only $4. Calculate the slope of the budget constraint between 1 unit of Good X and 2 units of Good X. (Remember to include a negative sign. Round to the nearest two decimal places if necessary.) Flag question Answer: Check

Explanation / Answer

Answering the first question as per Chegg policy

5. Slope of budget line = -Price of Good X/ Price of Good Y = - Px/Py

when 1 unit of Good X is consumed then slope = - 10/5 = -2

when 2 unit of X is consumed then slope = - 4/5= -0.8

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