Business, 11.02.2020 16:34 marcoantonioperezpan
You have an income of $100 to spend on two commodities. The price of commodity 2 is constant at $1.
(1) The price of commodity 1 is $2 for the rst 20 units, but $1 for each additional unit exceeding 20. Draw the budget set.
(2) The price of commodity 1 is $2 if 20 or fewer units are purchased, but $1 for all units (including the rst 20) if more than 20 units are purchased. Draw the budget set. Now suppose income is still $100, but commodity 1 is priced according to the bulk discount of part (2) above.
(3) The price of commodity 2 is $2 for the rst 30 units, but $1 for each additional unit exceeding 30. Draw the budget set.
(4) The price of commodity 2 is $2 if 30 or fewer units are purchased, but $1 for all units (including the rst 30) if more than 30 units are purchased. Draw the budget set.
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You have an income of $100 to spend on two commodities. The price of commodity 2 is constant at $1....
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