Answer to Question #56402 in Microeconomics for adil
I = Px*Qx + Py*Qy
When the budget line has the intercept Qy = 30 and Py = $10, then I = Px*0 + 30*10 = 300, so the Ali's income is I = $300.
The price of good Y can be found from the income equation in the point of interception with the X-axis:
300 = Px*20 + 10*0,
Px = $15.
The slope of budget line is:
300 = 15*Qx + 10*Qy
10Qy = 300 - 15Qx
Qy = -1.5Qx + 30, so the slope of budget line is -1.5.
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