Help me please 2. The province wishes to upgrade the technology used by universities and will subsidizeyour university $2 for every $1 they spend on technology up to a maximum of $16800.The university's budget is $12000. The price of technology (X) is $120 and the price onnon-technology (Y) is $40. Carefully draw all the budget lines labelling all points ofinterest. Show work.Y 300non-technology 280120260240220200180160140100120100808060402020406080100120140160180200220240260280300 Xtechnology a) At what point is the grant exhausted (where the university obtains the maximumgrant)?5b) What is the amount of the conditional grant?c) With an unconditional grant of the same dollar amount, how much better off wouldyou be compared to the conditional grant?

Answered: 2. The province wishes to upgrade the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Help me please

2. The province wishes to upgrade the technology used by universities and will subsidize
your university $2 for every $1 they spend on technology up to a maximum of $16800.
The university's budget is $12000. The price of technology (X) is $120 and the price on
non-technology (Y) is $40. Carefully draw all the budget lines labelling all points of
interest. Show work.
Y 300
non-
technology 280
120
260
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200
180
160
140
100
120
100
80
80
60
40
20
20
40
60
80
100
120
140
160
180
200
220
240
260
280
300 X
technology

a) At what point is the grant exhausted (where the university obtains the maximum
grant)?
5
b) What is the amount of the conditional grant?
c) With an unconditional grant of the same dollar amount, how much better off would
you be compared to the conditional grant?

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Given,

The government wants to modernise university technology, therefore it will give your university $2 for every $1 it spends on it, up to a maximum of $16800. The university has a $12,000 budget. Technology (X) costs $120, whereas non-technology (Y) costs $40. Draw every line on the budget with great care, labelling each interest point.

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