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QUESTION 8 Consider the following diagram from Lecture 2 What is the equation of the Price line? 20 12 AS-1 Slope I = 1-21 = 2 = Ps/Pr 4 5 10 T-2*S+20 Not enough information S-2*T+20

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Answer #1

Answer
Option 1
an equation is a form of
Y=ax+b
T=a*S+b
a=slope=-2
b=y axis intercept=20
the equation is
T=-2S+20

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