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A telephone company offers an optional package for local calls whereby each month the subscriber gets the first 50 min of local calls free, the
A telephone company offers an optional package for local calls whereby each month the subscriber gets the first 50 min of local calls free, the next 100 min at 0.25/min, and any additional time at the normal rate of 0.50/min. Draw the budget constraint for local phone calls and the composite good for a subscriber with an income of 100/mo. Instructions: 1. Use the line tool (Budget Constraint) provided to plot the Budget Constraint (plot 4 points) curve. 2. To earn full credit for this graph you must plot all required points for each curve.
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