KeyesRaveen
KeyesRaveen
02.04.2021 • 
Business

Suppose the only two goods in the world are pant and shirt. You have an exogenous income of $200. The price of pants is $20, and the price of shirt is $10. Suppose you have the coupon applied to shirts described as follows: (a) a 50% discount applies to the first 8 shirts and then regular price after the first 8 shirts. (b) regular price for the first 8 shirts and then a 50% discount after the first 8 shirts. Please put pants in the horizontal axis and shirts in the vertical axis, and draw the budged lines corresponding to the above two coupons.

Solved
Show answers

Ask an AI advisor a question