1) The local breakfast restaurant has a new offer: those who buy more than 10 sandwiches a month get a 50% discount on additional sandwiches. a. Jill is a regular at the shop. She loves this deal and says that she will buy more sandwiches than before. Draw her budget line with and without the offer; measure her sandwich consumption on the X and EOG on the Y axis. In the same graph show Jill's preferences. Derive her sandwich consumption before and after the deal. What indicates in your graph that she is better off with the promotion than without it? Explain (in one sentence).

1) The local breakfast restaurant has a new offer: those who buy more than 10 sandwiches a month get a 50% discount on additional sandwiches. a. Jill is a regular at the shop. She loves this deal and says that she will buy more sandwiches than before. Draw her budget line with and without the offer; measure her sandwich consumption on the X and EOG on the Y axis. In the same graph show Jill's preferences. Derive her sandwich consumption before and after the deal. What indicates in your graph that she is better off with the promotion than without it? Explain (in one sentence).

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 5CQQ

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1) The local breakfast restaurant has a new offer: those who buy more than 10 sandwiches a month get a 50% discount on additional sandwiches. a b. Jack says he is not interested. In a different graph that includes his budget line before and after (again measure EOG on the Y axis and sandwich consumption on the X axis) and his preferences, show his sandwich consumption before and after. In your graph what indicates that he is NOT better off with this deal? Explain
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