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#cfa #cfa-level-1 #economics #microeconomics #reading-14-demand-and-supply-analysis-consumer-demand #section-4-the-opportunity-set #study-session-4

Nigel’s Pub has a total budget of £128 per week to spend on cod and lamb. The price of cod is £16 per kilogram, and the price of lamb is £10 per kilogram.

  1. Calculate Nigel’s budget constraint.

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4. THE OPPORTUNITY SET: CONSUMPTION, PRODUCTION, AND INVESTMENT CHOICE
nt Note: This exhibit shows Smith’s budget constraint if she has an income of $60 and must pay $0.50 per slice of bread and $0.75 per ounce of wine. EXAMPLE 4 The Budget Constraint <span>Nigel’s Pub has a total budget of £128 per week to spend on cod and lamb. The price of cod is £16 per kilogram, and the price of lamb is £10 per kilogram. Calculate Nigel’s budget constraint. Construct a diagram of Nigel’s budget constraint. Determine the slope of Nigel’s budget constraint. Solution to 1: &#13


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