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From the Budget line shown below, find the price of good X2 given that the price of X1 good is ? 30. The equation on the Budget line is given as P1X1 + P2X2 =1000 |
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Answer» P1X1+ P2 X2 = 1000 30 x 20 + P2 x 40 = 1000 600 + 40P2 = 1000 40P2 = 1000 - 600 = 400 P2 = \(\frac{400}{40}\) = 10 |
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