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Figure 7.1

Question 28

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Figure 7.1 -Assume that the budget constraint in Figure 7.1 panel A is: P<sub>E</sub>E +P<sub>A</sub>A = I,where I is total income and <sub>PE</sub> is the price of education and P<sub>A</sub> is the price of all other goods.If U(E,A)= A+E,P<sub>E</sub> = 2,P<sub>A</sub> = 1,and I = 10 what is the quantity of education and all other goods consumed?
Figure 7.1
-Assume that the budget constraint in Figure 7.1 panel A is: PEE +PAA = I,where I is total income and PE is the price of education and PA is the price of all other goods.If U(E,A)= A+E,PE = 2,PA = 1,and I = 10 what is the quantity of education and all other goods consumed?

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