Practise explaining how income, taxes and relative prices shift or rotate a consumer budget line and change attainable combinations in A2 questions.
A consumer has to spend on two products, X and Y .
The budget line shows the different possible combinations of products X and Y that can be purchased when all the consumer's income is spent.
If the price of product Y increases to , what will be the maximum number of units of product X and product Y that the consumer can now purchase?
product X
product Y
5
10
5
20
10
10
20
10