Question
Kim has 10000 to spend on BigMac and Whopper. Now BigMac costs 1000 , and Whopper costs 1250. McDonalds issues a coupon for BigMac that
Kim has 10000 to spend on BigMac and Whopper. Now BigMac costs 1000 , and Whopper costs 1250.
McDonalds issues a coupon for BigMac that allows Kim to buy at most 5 BigMacs in a month at a 50 percent discount.
Draw the kinked budget line such that you put BigMac on the horizontal (x) axis, and Whopper on the (y) axis.
Provide the following pieces of information regarding your graph.
The budget line intersects the vertical axis at the point (x,y) = (0,).
The kink in the budget line takes place at the point (x,y) = (,).
The budget line intersects the horizontal axis at the point (x,y) = (, 0).
Theslope of the upper part of the budget line is
The slope of the lower part of the budget lineis
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