Dnna buys goods x and y she can just afford the bundle x


Donna buys goods X and Y. She can just afford the bundle X = 6 and Y = 11. She can also afford X = 12 and Y= 8. Each of these bundles exhausts her income.

(a) Draw Donna’s budget line.

(b) What is the ratio of the price of x to the price of y?

(c) If Donna spent all her money on x, how much x could she buy? If she spent all your money on y, how much y could she buy?

(d) Write a an equation that gives you Donna's budget line when the price of x is 1

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Business Economics: Dnna buys goods x and y she can just afford the bundle x
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