5. In the definition of the two good budget set, {(x1, x2) E Rp1x1 + p2x2 ≤m}; we argued that we could normalize the pri

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5 In The Definition Of The Two Good Budget Set X1 X2 E Rp1x1 P2x2 M We Argued That We Could Normalize The Pri 1 (34.17 KiB) Viewed 19 times

5. In the definition of the two good budget set, {(x1, x2) E Rp1x1 + p2x2 ≤m}; we argued that we could normalize the price of good 2 to be 1. (a) Express the budget set corresponding to p₁ = 7, P2= 3.5, and m = 10.5 in such a form. Draw this budget set. = (b) Repeat the above exercise for pi 8, P2= 2, and m = 12 and draw this budget set on the same axes. = 15, and (c) Repeat the above exercise for pi 10, P2 = 5, and m = draw this budget set also on the same axes.