Answer :

The budget line will be expressed as

4X + 5Y = 40


As income has increased so the consumer can purchase more of both the commodities and the budget line will shift parallelly outwards to A’B’ from AB


The slope of new budget line will be



- 4/5 = X/Y


X/Y = - 0.8


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
caricature
view all courses
RELATED QUESTIONS :

What is meant by Economics - Board Papers