Refer to this budget constraint: 2(x1) + 2(x2) = 100

Now suppose the government wants consumers to conserve bread, so it increases the price of bread to $4 for each additional loaf after 25 loaves. In other words, 26 loaes of bread will cost a customer 2 x 25 + 1 x 4 = $54

Draw the budget constraint. What is the area under the new budget constraint?

• note: we dont ascribe any intuitive meaning to this value. it is just a way to check that you have constructed the constraint correctly. No multiple choice options - open ended. Not looking for a formula, just looking for a number value