Consider a consumer's annual budget constraint for two goods: "everything else" and "tools". When answering the following questions, please be sure to label your graph accordingly. Draw the budget constraint for this consumer if income (v) = $60,000 and the price per tool (p.) is $20. Note: please graph tools along the x-axis. How would this consumer's budget constraint change in she received an additional $1,000 in income? Returning to the original conditions, how would this consumer's budget linc change if she received a $1,000, non-refundable and non-transferable, gift card from Home Depot? Assume Home Depot only sells tools. How does this budget line compare to that from the previous question? Note: The $1,000 gift card can only be spent on tools.
Consider a consumer's annual budget constraint for two goods: "everything else" and "tools". When answering the following questions, please be sure to label your graph accordingly. Draw the budget constraint for this consumer if income (v) = $60,000 and the price per tool (p.) is $20. Note: please graph tools along the x-axis. How would this consumer's budget constraint change in she received an additional $1,000 in income? Returning to the original conditions, how would this consumer's budget linc change if she received a $1,000, non-refundable and non-transferable, gift card from Home Depot? Assume Home Depot only sells tools. How does this budget line compare to that from the previous question? Note: The $1,000 gift card can only be spent on tools.
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter6: Consumer Choice Theory
Section6.A: Indifference Curve Analysis
Problem 3SQP
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