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2. Ch 2: Budget Constraint. You should learn to:Write an equation for the budget line and draw the budget set on a graph when you are given prices and income or when you are given two points on the budget line.Graph the effects of changes in prices and income on budget sets.Understand the concept of numeraire and know what happens to the budget set when income and all prices are multiplied by the same positive amount.Know what the budget set looks like if one or more of the prices is negativ20
Exercises PT 1

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