Violet buys pies (x) and champagne (y) with her income of $100. The price of champagne is py = $5 per bottle. Draw her budget constraints in each of the following cases assuming that both goods are divisible. (For each part, use the given template to draw her constraints, and then use your completed graph to fill in the description. Enter any points in order from left to right as they would appear on the graph.) 24- 20 16 12 4 8 12 16 20 24 (a) Pies cost Px = $5 per pie if she buys between zero and 10 pies, and $4 per pie if she buys more than 10 pies. Up to 10 pies, the budget has a slope of -1 25 20 |× ). If every pie were priced at $4 per pie, the budget line would extend from to 20 )× ) to (25 However, part of the line does not apply and would be dashed: the segment from Therefore, the rest of the line with a jump 10 ]× ) i is part of Violet's budget constraint. The slope of the lower part of the budget line is -0.8 discontinuity at
Violet buys pies (x) and champagne (y) with her income of $100. The price of champagne is py = $5 per bottle. Draw her budget constraints in each of the following cases assuming that both goods are divisible. (For each part, use the given template to draw her constraints, and then use your completed graph to fill in the description. Enter any points in order from left to right as they would appear on the graph.) 24- 20 16 12 4 8 12 16 20 24 (a) Pies cost Px = $5 per pie if she buys between zero and 10 pies, and $4 per pie if she buys more than 10 pies. Up to 10 pies, the budget has a slope of -1 25 20 |× ). If every pie were priced at $4 per pie, the budget line would extend from to 20 )× ) to (25 However, part of the line does not apply and would be dashed: the segment from Therefore, the rest of the line with a jump 10 ]× ) i is part of Violet's budget constraint. The slope of the lower part of the budget line is -0.8 discontinuity at
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Violet buys pies (x) and champagne (y) with her income of $100. The price of champagne is p, = $5 per bottle. Draw her budget constraints in each of the following cases assuming that both
goods are divisible. (For each part, use the given template to draw her constraints, and then use your completed graph to fill in the description. Enter any points in order from left to right as they
would appear on the graph.)
24-
20
16
12
4
8
12
16
20
24
(a) Pies cost Px = $5 per pie if she buys between zero and 10 pies, and $4 per pie if she buys more than 10 pies.
Up to 10 pies, the budget has a slope of -1
).
If every pie were priced at $4 per pie, the budget line would extend from
25
20
to
However, part of the line does not apply and would be dashed: the segment from
20
]× )
25
|× ).
Therefore, the rest of the line with a jump
discontinuity at
10
is part of Violet's budget constraint. The slope of the lower part of the budget line is -0.8](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc84b055e-144c-410a-b600-78f0e07aa308%2Fec8041ba-febf-4bea-ad98-4482d49a5580%2Fuboqjln_processed.png&w=3840&q=75)
Transcribed Image Text:Violet buys pies (x) and champagne (y) with her income of $100. The price of champagne is p, = $5 per bottle. Draw her budget constraints in each of the following cases assuming that both
goods are divisible. (For each part, use the given template to draw her constraints, and then use your completed graph to fill in the description. Enter any points in order from left to right as they
would appear on the graph.)
24-
20
16
12
4
8
12
16
20
24
(a) Pies cost Px = $5 per pie if she buys between zero and 10 pies, and $4 per pie if she buys more than 10 pies.
Up to 10 pies, the budget has a slope of -1
).
If every pie were priced at $4 per pie, the budget line would extend from
25
20
to
However, part of the line does not apply and would be dashed: the segment from
20
]× )
25
|× ).
Therefore, the rest of the line with a jump
discontinuity at
10
is part of Violet's budget constraint. The slope of the lower part of the budget line is -0.8
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