Suppose that an electric company charges consumers $:10 per kilowatt hour for electricity for the first 1,000

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Suppose that an electric company charges consumers $:10 per kilowatt hour for electricity for the first 1,000 kilowatt hours used in a month but $:15 for each extra kilowatt hour after that. Draw the budget constraint for a consumer facing this price schedule, and discuss why many individuals may choose to consume exactly 1,000 kilowatt hours?
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Intermediate Microeconomics and Its Application

ISBN: 978-1133189039

12th edition

Authors: Walter Nicholson, Christopher M. Snyder

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