past decade medical costs have increased more rapidly than other prices. In
order to illustrate how rising medical costs have affected consumer
alternatives, let X represent the quantity of medical services, and let Y
represent the quantity of other goods. Furthermore, let income (M) be measured in hundreds of dollars,
the price of medical services and other goods in terms of dollars per minute,
with M = 200, Px= 10, and Py= 10
the budget line, and determine the market rate of substitution.
the budget set.
your graph what happens to the budget constraint if Px
increases to $15.
the meaning of the slope of the two budget constraints?