Question
A recent newspaper circular advertised the following special on tires: Buy three, get the fourth tire for freelimit one free tire per customer. If a
A recent newspaper circular advertised the following special on tires: "Buy three, get the fourth tire for freelimit one free tire per customer." If a consumer has $360 to spend on tires and other goods and each tire usually sells for $40, plot this consumer's opportunity set when this special is offered. Instruction: If the opportunity sethas any kinks, be sure to plot all the points where the kinks occur, in addition to the points where the line crosses the intercepts. Graph the budget set from where Tires = 0 to where it crosses the X-axis.
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