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Suppose that a consumer has $200 to spend per month. Assume that the price of a unit of a household product is $5. For each
Suppose that a consumer has $200 to spend per month. Assume that the price of a unit of a household product is $5. For each of the following scenarios, draw the consumer's budget constraint by plotting all else on the y-axis and household products on the x-axis.
(a)For every $100 she spends on household products she gets $10 back which she can spend on anything.
(b)Suppose that once the consumer purchases 10 household products, each additional household product is 50% cheaper.
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