Suppose that a country produces 200 million dollar value of total output in a year. The country produces only two goods: pepperoni pizzas and bottles of soda. The price of a pepperoni pizza is $5 and the price of a bottle of soda is $2. Draw the country’s iso-value line on a graph. If the price of a pepperoni pizza increases to $8, what will happen to the country’s iso-value line

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
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Suppose that a country produces 200 million dollar value of total output
in a year. The country produces only two goods: pepperoni pizzas and
bottles of soda. The price of a pepperoni pizza is $5 and the price of
a bottle of soda is $2. Draw the country’s iso-value line on a graph. If
the price of a pepperoni pizza increases to $8, what will happen to the
country’s iso-value line?

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