Answer to Question #273903 in Microeconomics for Ashes

Question #273903

Kali lives on mangoes and avocados, Pm = $5, Pa = $10, and her income is $200.


Identify and illustrate on a new graph Kali’s new budget constraint if her income doubled, the price of mangoes doubled, and the price of avocados remained constant.

1
Expert's answer
2021-12-02T10:13:49-0500

Let Pm and Pa denote the Prices of Mangoes and Avocados


"5Pm+10Pa=200\\\\"

when the price of mangoes and income is doubled

"!0Pm+10Pa=400"





The Blue line represents Kali new budget line


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