A consumer has $200 to divide between purchasing wine and quiche. Suppose wine costs $20 per bottle if the consumer purchases up to 5 bottles. After that, it is $10 per bottle. Suppose quiche is $10 each. Please draw the budget line. Will a consumer purchase exact 5 bottles of wine? And why? (Explain it using both the graph and words)

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Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.