Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(a) Oskar has $100 and he buys apples at $6 per kg and kiwi at $7 per kg. When he buys more than 4kg of

(a) Oskar has $100 and he buys apples at $6 per kg and kiwi at $7 per kg. When he buys more than 4kg of apples, he qualifies for the discount: each kg of apples above 4kg costs only $3 per kg.

He draws his budget line with apples on the horizontal axis and kiwis on the vertical axis.

If he buys more than 4kg of apples, the equation of his budget line is given by:

(b)

Felicia has $100 and she buys pears at $3 per kg and oranges at $5 per kg. When she buys more than 5 kg of pears, she has to pay premium: each kg of pears above 5kg costs $5 per kg.

She draws her budget line with pears on the horizontal axis and kiwis on the vertical axis.

If she buys more than 5 kg of pears, the equation of her budget line is given by:

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Rural Development And Urban-Bound Migration In Mexico

Authors: Arthur Silvers, Pierre Crosson

1st Edition

1317270681, 9781317270683

More Books

Students also viewed these Economics questions