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Randhawa Document

In:

Submitted By 03447444155
Words 450
Pages 2
BBA 1st

۩ﺒﺴﻢﺍﷲﺍﻠﺮﺣﻤﻦﺍﻠﺮﺤﻴﻢ۩

Department: BBA (Banking & Finance)

Assigned by: Ayesha Saleem

Assigned to: Muhammad Ahmad

Roll No. (134/3612)

Subject: Micro Economics

Semester: 1st (Evening)

Institute: GC University Faisalabad

1. A consumer has income (I) OF $3,000. Pepsi price is $3 & cheese price is $6. a. Draw the consumer Budget Line. b. What is the slope of this Budget Line?
Budget Line: It shows all these combinations of two goods X & Y which a consumer can buy at given prices of goods, (OR) the limit on the consumption bundles that a consumer can afford. Income = I = XPx + YPy & Slope of Budget Line = Px/Py

|Pepsi (X) |Cheese (Y) |Pepsi Price (Px) |Cheese Price (Py) $ |Income (I) |
| | |$ | |= XPx + YPy |
|0 |500 |$3 |$6 |$3000 |
|100 |450 |$3 |$6 |$3000 |
|200 |400 |$3 |$6 |$3000 |
|300 |350 |$3 |$6 |$3000 |
|400 |300 |$3 |$6 |$3000 |
|500 |250 |$3 |$6 |$3000 |
|600 |200 |$3 |$6

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