Using Scenario 1 what would happen to your budget constraint if you came up with a study technique that allowed you to earn 3 points for every hour spent studying economics and still only 2 points for every hour spent studying French? What has
happened to the relative price of one hour of studying French?
The budget constraint would pivot out. The relative price of studying French would actually rise since every hour you spend studying French is costing your 3 points towards your economics grade rather than the previous 2 points.
Economics
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